+2 votes
in Class 12 by kratos

Define the law of Diminishing Marginal Utility and ‘Principle of Equi Marginal Utility’.

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+3 votes
by kratos
 
Best answer

Law of diminishing Marginal Utility - This law states that other things remain constant as a consumer consumes more and more units of a commodity, the marginal utility derive from the successive units of that commodity tends to decrease.

Principle of Equi-Marginal Utility – It states that consumer will allocate his expenditure on different goods in such a way that the utility gained from the last rupee spent on each commodity is equal.

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