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What is the law of diminishing utility? Please explain with a few examples.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the law of diminishing utility? Please explain with a few examples.

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Law of diminishing marginal utility says that as we consume more and more units of same good then marginal utility derived from each successive unit keeps on decreases.

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