ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The law of diminishing marginal utility holds that as we consume more of an item, the amount of satisfaction produced by each additional unit of that good declines. The change in utility gained from utilizing an additional unit of a product is known as marginal utility.

Detailed explanation-2: -The law of diminishing marginal utility means that as you use or consume more of something, you will get less satisfaction from each additional unit of that thing.

Detailed explanation-3: -Because consumers derive less satisfaction from consuming additional units of a good, they will only be willing to buy more of a particular good if the good’s price decreases. In this way, the law of diminishing marginal utility helps explain the law of demand.

Detailed explanation-4: -In economics, the law of diminishing marginal utility states that the marginal utility of a good or service declines as more of it is consumed by an individual. Economic actors receive less and less satisfaction from consuming incremental amounts of a good.

Detailed explanation-5: -Diminishing marginal utility refers to the phenomenon that each additional unit of gain leads to an ever-smaller increase in subjective value. For example, three bites of candy are better than two bites, but the twentieth bite does not add much to the experience beyond the nineteenth (and could even make it worse).