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# Learn

## Limitation/Exception of Law of Diminishing Utility

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

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

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

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

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) 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

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

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 …