Explain the law diminishing marginal utility and it's units

Hello Aspirant,

Hope you are doing great. According to the law of diminishing marginal utility, as consumption rises, the marginal utility from each additional unit decreases. As it may turn completely unfavorable to consume another unit of any product, the marginal utility may decrease and eventually turn into negative utility. The difference between the current total utility and a prior total utility can be used to calculate the change in total utility. The current unit amount can be calculated by subtracting a previous unit amount to get the change in units. Economists examine consumer choices to determine utility in terms of preferences that are revealed.

Marginal Utility = Change In Total Utility / Change In Units

ALL THE BEST

Hello,

According to the Law of Diminishing Marginal Utility (DMU), when we use more and more units of a good, the utility we receive from each additional unit keeps declining.

People spend their income on a variety of things because when one product is used more and more, the marginal pleasure received from more consumption of the same good decreases.

The DMU law is universally applicable and covers all products and services.

The following is an instance when the DMU legislation does not apply:

• This law only applies to identical units of a commodity that are the same in terms of shape, size, length, etc.
• The legislation only applies in situations when the consumer's taste does not change and the trend of the good does not change, which is rarely the case.
• Drugs, alcohol, and other habitual consumables are not covered by this regulation.

Unit Change / Total Utility Change = Marginal Utility

The difference between the present total utility and a prior total utility may be used to compute the change in total utility. The current unit amount may be computed by subtracting a prior unit amount to get the change in units.

Thank You