Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
305 views
in Consumers Equilibrium by (63.7k points)

What is the importance of the law of diminishing marginal utility?

1 Answer

+1 vote
by (63.4k points)
selected by
 
Best answer

This law is used for public finance. We know that the utility of money is low for rich and it is high for the poor people, therefore by imposing tax on the rich, social welfare increases by spending that amount on poor people.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...