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Define marginal utility. State the law of diminishing marginal utility. |
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Answer» Marginal Utility :It is addition more to the total utility as consumption is increased by one more unit of the commodity. Law of Diminishing Marginalutility :It states that as consumer consumes more and more units of a commodity, the utility derived from each successive unit goes on decreasing. According to this law TU increases at decreasing rate and MU decreases. |
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