DEFINITION:
The law of marginal utility is a law of economics stating that as a person increases consumption of a product while keeping consumption of other products constant.
There is a decline in the marginal untility that person derives frim consuming each addition uniy of that product.
EXAMPLE:
Children when they buy toys, over time because they have more toys stoo palying with antique toys lising their interest in olaying with them.
In this case the marginal utility does not refer to material value and their economic quantification but rather the ability of consumption.
The law of marginal utility is a law of economics stating that as a person increases consumption of a product while keeping consumption of other products constant.
There is a decline in the marginal untility that person derives frim consuming each addition uniy of that product.
EXAMPLE:
Children when they buy toys, over time because they have more toys stoo palying with antique toys lising their interest in olaying with them.
In this case the marginal utility does not refer to material value and their economic quantification but rather the ability of consumption.
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