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.

Detailed explanation-2: -The marginal utility, or the change in subjective value above the existing level, diminishes as gains increase. As the rate of commodity acquisition increases, the marginal utility decreases. If commodity consumption continues to rise, marginal utility at some point may fall to zero, reaching maximum total utility.

Detailed explanation-3: -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.

Detailed explanation-4: -The Law of Diminishing Marginal Utility states that the additional utility gained from an increase in consumption decreases with each subsequent increase in the level of consumption. Marginal Utility is the change in total utility due to a one-unit change in the level of consumption.

Detailed explanation-5: -Understanding Marginal Utility Although marginal utility tends to decrease with consumption, it may or may not ever reach zero depending on the good consumed. Marginal utility is useful in explaining how consumers make choices to get the most benefit from their limited budgets.