Equi-Marginal Utility
Equi-Marginal Principle for Utility states that when people
have a limited resource of monetary fund, they distribute their monetary
resources towards all the required goods following different patters so as to
maintain maximum utility.
For Example:
When it is the last week of a month and we have a limited
balance i.e. Bank as well as Wallet. We try to cut down all the miscellaneous
expenditures like having a single Veg Puff instead of a Cheese Maggie in the
grocery, we cancel the plan for Movie that week and make use of our Laptops, we
order just a plain Veg-Thali that Saturday instead of A Tandoori Chicken with
Rumali Roti and Malai Kofta. And we make sure not to miss the mess food even if
we don’t like it. We start using Bus instead of Uber or Ola.
Using all of these following tactics we finally get the
Maximum Utility by Optimizing our Cost Cut Skills.
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