Question:
What is the law of diminishing utility?
What is the law of diminishing utility?
Show Hint
The law of diminishing utility means that each additional unit consumed provides less satisfaction than the previous one.
Updated On: Nov 5, 2025
Hide Solution
Verified By Collegedunia
Solution and Explanation
The law of diminishing marginal utility states that as a person consumes more units of a good, the additional satisfaction (marginal utility) derived from each additional unit decreases.
Was this answer helpful?
0
0
Top Questions on Consumer theory
Which of the following are applicable to the individual's expenditure function?
(A) It is homogeneous of degree zero in all prices.
(B) It represents the maximum expenditure to achieve a given level of utility.
(C) It is non-decreasing in prices.
(D) It is concave in prices.
Choose the correct answer from the options given below:
- CUET (PG) - 2025
- Economics
- Consumer theory
- An individual's utility function for two goods - milk (M) and butter (B) is given as \( U(M,B) = 5M - 10B \), and the cost of each unit of the two goods is Rs 1, with a weekly budget of Rs 5. Find the individual's utility maximizing choice.
- CUET (PG) - 2025
- Economics
- Consumer theory
- Suppose utility function of a consumer is \( u(x, y) = xy \), where \( x \) and \( y \) are quantities of the two commodities consumed. If price of \( x \) is Rs.1 and that of \( y \) is Rs.2, and income of the consumer is Rs.100, utility maximizing quantity consumption of \( x \) is ..........
- IIT JAM EN - 2025
- Economics
- Consumer theory
- In the case of first-degree price discrimination, which of the following statements is/are CORRECT in the long run?
- IIT JAM EN - 2025
- Economics
- Consumer theory
- Which of the following is/are the shock(s) to the IS curve?
- IIT JAM EN - 2025
- Economics
- Consumer theory
View More Questions
Questions Asked in UP Board XII exam
- Under perfect competition, the demand curve of a firm is
- UP Board XII - 2025
- Economics
- The correct IUPAC name for \( CH_2 = CHCH_2NHCH_3 \) is:
- Write \( \cot^{-1}\left\{\frac{1}{\sqrt{x^2-1}}\right\}; x>1 \) in the simplest form.
- UP Board XII - 2025
- Inverse Trigonometric Functions
- The degree of differential equation \[ 9 \frac{d^2y}{dx^2} = \left\{ 1 + \left(\frac{dy}{dx}\right)^2 \right\}^{\tfrac{3}{2}} \] is
- UP Board XII - 2025
- Differential Equations
- Answer any one of the following questions in about 80 words:
(a) What gift did the Maharaja bring on the third birthday of his son?- UP Board XII - 2025
- Literature
View More Questions