marginal utility

Marginal Utility Utility is the fulfillment gained by a person from the consumption of a good or service Marginal utility refers to the additional satisfaction a consumer derives from the consumption of one extra unit of a product Marginal utility decreases with each additional consumption of a particular good An individual 's demand for a particular product is determined by its marginal utility rather than total utility Table one : Utility Law of Diminishing Marginal Utility This law states that as an individual increases the consumption of a good , while consumption of other goods

has been kept constant , there is a reduction in the marginal utility derived by the individual from the consumption of each extra unit of the good Assumptions The Law of marginal utility is based on the principle that all of human 's wants are manageable . It assumes that The units of consumption are suitable The nature of the good consumed remains the same The units of the consumption are identical The product is consumed consecutively The consumer 's mental condition does not change Exceptions There are few exceptions to the Law of diminishing marginal utility Addictive drugs Jewellery collection by women Money earned Marginal Value Utility has a limitation where it can never be observed The relative marginal utilities of different gods can be observed This is the marginal value , which is a measure of what one more unit of a particular good is worth in terms of other goods Reducing Marginal Value of Water We use...