0
This law states that with the additional consumption the satisfaction decreases. Let's take an example: Suppose you are famished and you are offered five bread pieces. The first piece of bread will give you utmost satisfaction. But the satisaction level goes down with the very piece of next bread. After fourth piece, you will not feel like having the fifth piece. This is all about law of diminishing marginal utility.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
Criticism of law of diminishing marginal utility?
the criticisma of the law of diminishing marginal utility
Why does the marginal rate of substitution diminish?
As a matter of fact, law of diminishing marginal rate of substitution conforms to the law of diminishing marginal utility. According to law of diminishing marginal utility, as a consumer increases the consumption of a good, its marginal utility goes on diminishing. On the contrary, if the consumption of a good decreases, its marginal utility goes on increasing.
Explain the merits and demerits of law of diminishing marginal utility?
explain the demerits of diminishing marginal utility
How does an individual or household benefit from the law of diminishing marginal utility?
what is it marginal utility
Does the law of diminishing marginal utility apply in love issues?
yes
Increasing marginal utility of goods?
Not possible. Law of Diminishing Marginal utility states that equal additions to a good provide smaller and smaller increases in utility, therefore marginal utility decreases.
What is law of dmu?
the term "law of DMU" comes from economics. DMU stands for dinimishing marginal utility. the law of diminishing marginal utility states that beyond a certain quantity, addtional units of a specific good will yield declining amount of extra satisfaction to a consumer.
Who gave the concept of law of diminishing marginal utility?
It is William Stanley Jevons
Example of law of diminishing marginal utility?
the more you have of an item the less you want
What are the Limitation to Law of diminishing marginal utility?
http://wiki.answers.com/Q/What_are_the_Limitation_to_Law_of_diminishing_marginal_utility"
What are the importance of law of diminishing of marginal utility?
The importances of law of diminishing marginal utility are given below: a) use in consumption b) use in production c) use in exchange d) use in distribution e) use in public finance.
What is the definition of Law of Diminishing Marginial Utility?
In economics, the marginal utility of a good or service is the utility gained (or lost) from an increase (or decrease) in the consumptio...
