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: -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-3: -The law of diminishing marginal utility states the marginal utility from an additional unit of consumption declines as the quantity of consumed goods increases. Consumers choose their baskets of goods by equating marginal utility of a good to its price, which is a marginal cost of consumption.

Detailed explanation-4: -Diminishing marginal utility is the decrease in satisfaction a consumer has from the consumption of each extra unit of a good or service. Create invoices for free with SumUp Invoices. Put simply, with diminishing marginal utility, satisfaction decreases as consumption increases.

Detailed explanation-5: -According to the law of diminishing marginal utility, as the consumption of good increases the additional amount of happiness the good provides the consumer decreases.