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Law of diminishing marginal utility and equi marginal utility

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LAW of diminishing marginal utility and equi marginal utility

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The equi-marginal principle is based on the law of diminishing marginal utility. The equi-marginal principle states that a consumer will be maximizing his total utility when he allocates his fixed MONEY INCOME in such a way that the utility derived from the LAST unit of money SPENT on each good is equal.

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