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Limitation/Exception of Law of Diminishing Utility There are some exceptions or limitations of the law of diminishing utility. Case of intoxicants: Consumption of liquor defies the law for a short …

Assumptions of Law of Diminishing Marginal Utility The law of diminishing marginal utility is true under certain assumptions. These assumptions are as under: i) Rationality: In the cardinal utility analysis, …

Schedule of Law of Diminishing Marginal Utility Units Total Utility Marginal Utility 1st glass 2nd glass 3rd glass 4th glass 5th glass 6th glass 20 32 40 42 42 39 …

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 …

The main determinants/factors which determine the degree of price elasticity of supply are as under: (i) Time period:  Time is the most significant factor which affects the elasticity of supply. If …