Saturday, September 1, 2018

Law of diminishing marginal utility

Law of diminishing marginal utility states that, 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 the good.

For eg-

When we watch a movie for the first time ,the utility derived from it is maximum. If we go on watching the same movie again and again ,the utility derived from it will keep on diminishing  each time.

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