6Marks module #01.QUESTION:- EXPLAIN THE LAW OF DIMINISHING MARGINAL UTILITY WITH THE HELP OF SCHEDULE AND DIAGRAM.

6marks : Law of Diminishing Marginal Utility

According to this law as the consumer goes on consuming more and more additional unit of a commodity, marginal utility (MU) derived from each successive units goes on diminishing.This law is also known as fundamental law of satisfaction.
Assumptions- Cardinal measure, Continuous consumption, rational consumer, No change in quality, MU of money remain constant, fixed income and prices, etc.
Tabular and Graphical Presentation:-  

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EXPLAINATION:- In the given diagram utility is shown on OY-axis and qty.units is shown on OX-axis. In the MU is the marginal utility curve which is downward due to the law of diminishing marginal utility. This law says that as the consumer goes on consuming an additional unit of commodity marginal utility from the successive units goes on diminishing.
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