Tuesday, April 21, 2020

Law of diminishing marginal utility

Law of Diminishing Marginal Utility.

In the words of Boulding , " As a consumer increases the consumption of any commodity keeping constant the consumption of all other commodities, Marginal Utility of the variable commodity must eventually decline." 
In other words ,as more and more of a commodity is consumed, at a given point of time, its utility starts diminishing.

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