GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The additional benefit which a person derives from a given increase of his stock of a thing diminishes with every increase in stock that he has already
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Total utility diminishes with the consumption of every additional unit
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Utility always diminishes whether something is consumed or not
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Utility first increases and after that diminishes at every point
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Detailed explanation-1: -What is Law of Diminishing Utility? According to many economists like Dr Marshall, the law of diminishing marginal utility definition is when the additional benefit that a person derives from a given increase of his stock of anything diminishes with the increase in the stock that he already has.
Detailed explanation-2: -The “Law of Diminishing Marginal Utility” states that for any good or service, the marginal utility of that good or service decreases as the quantity of the good increases, ceteris paribus. In other words, total utility increases more and more slowly as the quantity consumed increases.
Detailed explanation-3: -Law of diminishing marginal utility is based on psychological law that as more and more units of a commodity is consumed, marginal utility derived from every successive unit will decline in respect to all goods with a few exception. Was this answer helpful?