How can i attempt my question about Law of Diminishing Marginal Utility??
what will be the best authentic statement of the law?
what will be the assumptions of the law?
and all other stuff related with this topic.i need help....
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Law of diminishing marginal utility states that the utility or satisfaction derived from consumption form each additional unit of a good fall with the increase in total quantity of that goods consumed.
There are no specific assumptions regarding the conditions under which this law holds true. However it may be noted that the utility itself is a subjective variable, which is not open to measurement, although the law of diminishing marginal utility implies that utility can be measured. Though utility cannot be measured accurately, it is possible to compare utilities derived from different goods or from the same good at different levels of consumption.
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