Principle of diminishing marginal utility :-
the more of a good that one obtains in a specific period of time , the less the additional utility derived from an additional unit of good.
we know consumers are not identical which determines the rate at which utility diminishes as it depends on individual tastes and preference and so differs across consumers.
The law diminishing marginal utility state that whenever a consumer consume same thing over and over then the utility of the specific commodity goes on diminishing.
For eg :- if a consumer goes in a hotel and order for his favourite food for the first time, when he start eating it gives him a immense pleasure, so the utility of the first order is high but when he orders the same food again then the utility will be less compare to the first time when he ordered because this time he's not feeling so hungry as he feel's in the first time.
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