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.

Introduction to Economics

My blog, Fundamentals of Economics, aims to help students understand the complex and abstract concepts, theories and models in Economics. As the subject is very comprehensive, therefore the scope of elaboration increases.The blog will be using real life examples to help you understand the key concepts of Economics.

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DEFINITION OF ECONOMICS

Economics as a science was born in 1776, with Adam Smith's magnum opus- An Inquiry into the nature and causes of Wealth of Nations. Economics was derived from the Greek words 'Oikos' (a house) and  'nemein' ( to manage) which meant, managing a household with the limited available resources in the best possible manner. 

There are are there are are plenty of definitions of Economics but broadly they can be classified into four groups;

1) Wealth,

2) Welfare,

3) Scarcity and

4) Growth.