Question

Who basically propounded the concept of Law of Equimarginal utility?

• A. Marshall
• B. Gossen
• C. Ricardo
• D. Mill

Hint:

While Marshall made it famous, the Law of Equimarginal Utility originated with Gossen and is known as his Second Law.

Answer 1

The Correct Option is B

The Law of Equimarginal Utility, which states that a consumer maximizes their total utility by allocating their income such that the marginal utility per dollar spent on each good is equal, was first formulated by the German economist Hermann Heinrich Gossen. It is often referred to as "Gossen's Second Law." Alfred Marshall later refined, elaborated, and popularized the concept in his book "Principles of Economics."