ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In simple terms, the law of diminishing marginal utility means that the more of an item that you use or consume, the less satisfaction you get from each additional unit consumed or used.

Detailed explanation-2: -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).

Detailed explanation-3: -According to the law of diminishing marginal utility, when marginal utility diminishes, total utility increases at a decreasing rate. Marginal utility is the rate of change in total utility, thus, it decides the slope of total utility curve.

Detailed explanation-4: -The law of diminishing marginal productivity states that when an advantage is gained in a factor of production, the productivity gained from each subsequent unit produced will only increase marginally from one unit to the next.