LIMITATIONS OF LAW OF DIMINISHING MARGINAL UTILITY

Law of diminishing marginal utility

Law of Diminishing Marginal Utility The Law of Diminishing Marginal Utility (LDMU) states that the marginal utility of a commodity decreases as more units are acquired. It is a fundamental law in economics and explains how the utility derived from any goods or services decrease with increase in consumption. The Law of Diminishing Marginal Utility … Read more