Home » , , » The Law of Diminishing Marginal Utility

The Law of Diminishing Marginal Utility


This law expresses the mode of consumer satisfaction of a commodity. The principle behind the law of diminishing marginal utility is that, as we consume more and more of a commodity, the utility that we derive from that commodity keeps diminishing. According to this law as a person purchases more and more units of a commodity, its marginal utility keeps decreasing.


Note: This is published for the internal use (of St. Philomena's College students) only and hence requires verification. 
Share this article :

Post a Comment

 
Fathimath Sama
Copyright © 2012. Oscar Education - All Rights Reserved