Marginal Utility : It is addition more to the total utility as consumption is increased by one more unit of the commodity. Law of Diminishing Marginal utility : It states that as consumer consumes more and more units of a commodity, the utility derived from each successive unit goes on decreasing. According to this law TU increases at decreasing rate and MU decreases.
Define marginal utility. State the law of diminishing marginal utility.
Answers
Mr.datta
Marginal Utility : It is addition more to the total utility as consumption is increased by one more unit of the commodity.
Law of Diminishing Marginal utility : It states that as consumer consumes more and more units of a commodity, the utility derived from each successive unit goes on decreasing. According to this law TU increases at decreasing rate and MU decreases.