Answer to Question #95906 in Microeconomics for SHAHADAT HOSSEN

Question

Describe the Law of
Diminishing Marginal Utility. In the case of which of the following commodities the law
doesn’t work: Mango, Sweets, Sugar, Money, Rice, Wealth, and Ornament.

Answer 1

The  law of diminishing marginal utility states when an individual repeatedlly it will yield marginal utility with a diminishing rate. For example, if one consumes a certain type of cake several times their satisfaction diminishes and they will opt for another type. However, there are other things that law of diminishing marginal utility does not apply. For instance, in this case money does not apply since the desire for money will not diminish.