Explain law of diminishing marginal utility?


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Brenda Salvatierra Profile
What Does Law Of Diminishing Marginal Utility Mean?
A law of economics stating that as a person increases consumption of a product - while keeping consumption of other products constant - there is a decline in the marginal utility that person derives from consuming each additional unit of that product.

Explanation of the Law Of Diminishing Marginal Utility
This is the premise on which buffet-style restaurants operate. They entice you with "all you can eat," all the while knowing each additional plate of food provides less utility than the one before. And despite their enticement, most people will eat only until the utility they derive from additional food is slightly lower than the original.

For example, say you go to a buffet and the first plate of food you eat is very good. On a scale of ten you would give it a ten. Now your hunger has been somewhat tamed, but you get another full plate of food. Since you're not as hungry, your enjoyment rates at a seven at best. Most people would stop before their utility drops even more, but say you go back to eat a third full plate of food and your utility drops even more to a three. If you kept eating, you would eventually reach a point at which your eating makes you sick, providing dissatisfaction, or 'this-utility'.
Muhammad Abdullah786 Profile
Simply the utility we mean, the power of a good to satisfy human wants, the water has a power to quench one's thirst and a movie has a power to provide enjoyment etc. For our discussion, by utility we mean the satisfaction. As we told above that the classical economists are of the view that the utility or satisfaction depends upon the units of a particular good. It is as you = f (Q) or TU = F (Q).
This is called utility or total utility function. Moreover, as we know that utility can be expressed into numbers, if a consumer drinks a glass of milk, the satisfaction he obtained can be represented into the numbers like 2, 4, 6, 10, 15 etc.
By marginal utility (MU), we mean the net change in total utility by having consumed an additional unit of a commodity.

For example a consumer is using units of apples if the total utility of fist apple is 10 units while the total utility goes to18 units. If he uses the two apples then the net change in total utility or marginal utility is 8.
Now a day, it is said that MU is the derivative of total utility function or it is the slope TU curve.
Anonymous Profile
Anonymous answered
Law of diminishing marginal utility states that as more and more standard units of a commodity are continuously  consumed, marginal utility derived from every additional unit must decline.
It is called Fundamental Law of Satisfaction
Fundamental Psychological law.
Anonymous Profile
Anonymous answered
As consumer consumes more and more units of any commodity, the utility that consumer derives from each additional unit rises
Tauseef Sheikh Profile
Tauseef Sheikh answered
Option "A": The law of diminishing marginal utility states that: As consumer consumes more and more units of any commodity, the utility that consumer derives from each additional unit falls

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