ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The law of diminishing marginal utility states that all else equal, as consumption increases, the marginal utility derived from each additional unit declines. Marginal utility is the incremental increase in utility that results from the consumption of one additional unit.

Detailed explanation-2: -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-3: -The law of diminishing marginal utility states that as more and more of goods are consumed, the utility derived from them falls. However, there is an exception to this law. It is observed that a consumer sometimes gain more utility as more and more of a good is consumed.

Detailed explanation-4: -An economic rule governing production which holds that if more variable input units are used along with a certain amount of fixed inputs, the overall output might grow at a faster rate initially, then at a steady rate, but ultimately, it will grow at a declining rate.

Detailed explanation-5: -The Law of Diminishing Marginal Utility states that as more and more units of a commodity are consumed (continuously), marginal utility derived from every additional unit must decline. This law can be explained with the help of the following Schedule : Units Consumed. Total Utility (TU) Marginal Utility(MU)