Explanation and example of law of diminishing marginal utility This law can be explained by taking a very simple example. Suppose a man is very thirsty. He goes to the …

Law of Diminishing Marginal Utility Definition and Statement of the Law The law of diminishing marginal utility describes a familiar and fundamental tendency of human behavior. The law of diminishing …

Total utility (TU) and Marginal Utility (MU): Total Utility (TU) Definition and Explanation “Total utility is the total is the total satisfaction obtained from all units of a particular commodity consumed …

Assumptions or Cardinal Utility Analysis: The main assumption or premises on which the cardinal utility analyses are made as under: (i) Rationality. The consumer is retinal. He seeks to maximize …

Cardinal Utility Analysis/ Approach Definition and Explanation: Human wants are unlimited and they are of different intensity. The means at the disposal of a man are not only search but …

Concept of utility Jevon (1835-1882) was the first economist who introduces the concept of utility in economics. According to him: “Utility is the basis on which the demand of an …