Law of diminishing marginal utility depends up on various assumptions.

Ans. Yes, I do agree with the above statement because following are the assumptions of the law of diminishing marginal utility.

Assumptions of the law
The validity of the law depends upon the following assumptions­
1.       Homogeneity
2.       Single use
3.       Cardinal measurement
4.       Rationality
5.       Continuity
6.       Reasonability
7.       Constancy
8.       Divisibility
9.       Constant marginal utility of money income

1.       Homogeneity - The law assumes that units of a commodity consumed by a consumer are uniform. They are identical or same in case of size, colour, shape, taste, quality, etc.

2.       Single use - Utility is multi-purpose for some goods which satisfy variety of wants. Here, it is assumed that a commodity is used to satisfy only a single want to experience the law.

3.       Cardinal measurement - Utility can be measured in numbers. So that, it is possible to know and compare utility derived from each unit of a commodity. It helps to understand the law.

4.       Rationality - A consumer is assumed to be a rational person and his behaviour is normal and therefore, he tries to maximise his satisfaction.

5.       Continuity - The units of a commodity are consumed in quick succession, one after another. MU will not diminish, if there is time interval.

6.       Reasonability - The units of commodity consumed, should be of a standard or normal size. They should neither be too big nor too small. e.g. a cup of tea, a glass of water, etc.

7.       Constancy - Income, taste, habits, liking, etc., of a consumer and price of a commodity remain constant throughout the period of consumption. It also assumes that MU of each unit of money remains constant.

8.       Condition of divisibility - The law assumes that the commodity consumed by the consumer is divisible so that it can be acquired in small quantities for quick consumption.

9.       Constant marginal utility of money income When the consumer spends his income, the utility of the remaining money income is the same as his total income.

The law holds true only, if the above given assumptions are fulfilled.

No comments:

PDF FILE TO YOUR EMAIL IMMEDIATELY PURCHASE NOTES & PAPER SOLUTION. @ Rs. 50/- each

SSC MATHS I PAPER SOLUTION

SSC MATHS II PAPER SOLUTION

SSC SCIENCE I PAPER SOLUTION

SSC SCIENCE II PAPER SOLUTION

SSC ENGLISH PAPER SOLUTION

SSC & HSC ENGLISH WRITING SKILL

HSC ACCOUNTS NOTES

HSC OCM NOTES

HSC ECONOMICS NOTES

HSC SECRETARIAL PRACTICE NOTES

You can also pay the necessary amount (Rs. 50 for Each Notes) to our UPI ID:

After paying Rs. 50 you will get your notes and paper solution either by email or through WhatsApp in PDF digital form.


If you are not certain how this will work then please contact on this number: 8169449238 (Only WhatsApp) No personal Calls allowed. All the best for upcoming Board Exam.


2019 Board Paper Solution

HSC ENGLISH SET A 2019 21st February, 2019

HSC ENGLISH SET B 2019 21st February, 2019

HSC ENGLISH SET C 2019 21st February, 2019

HSC ENGLISH SET D 2019 21st February, 2019

SECRETARIAL PRACTICE (S.P) 2019 25th February, 2019

HSC XII PHYSICS 2019 25th February, 2019

CHEMISTRY XII HSC SOLUTION 27th, February, 2019

OCM PAPER SOLUTION 2019 27th, February, 2019

HSC MATHS PAPER SOLUTION 2nd, March, 2019

SSC ENGLISH STD 10 5TH MARCH, 2019.

HSC XII ACCOUNTS 2019 6th March, 2019

HSC XII BIOLOGY 2019 6TH March, 2019

HSC XII ECONOMICS 9Th March 2019

SSC Maths I March 2019 Solution 10th Standard11th, March, 2019

SSC MATHS II MARCH 2019 SOLUTION 10TH STD.13th March, 2019

SSC SCIENCE I MARCH 2019 SOLUTION 10TH STD. 15th March, 2019.

SSC SCIENCE II MARCH 2019 SOLUTION 10TH STD. 18th March, 2019.

SSC SOCIAL SCIENCE I MARCH 2019 SOLUTION20th March, 2019

SSC SOCIAL SCIENCE II MARCH 2019 SOLUTION, 22nd March, 2019


BUY FROM PLAY STORE

DOWNLOAD OUR APP



HOW TO PURCHASE OUR NOTES?




S.P. Important Questions For Board Exam 2020


O.C.M. Important Questions for Board Exam. 2020


Economics Important Questions for Board Exam 2020


Chemistry Important Question Bank for board exam 2020


Physics – Section I- Important Question Bank for Maharashtra Board HSC Examination


Physics – Section II – Science- Important Question Bank for Maharashtra Board HSC 2020 Examination


MUST REMEMBER THINGS on the day of Exam


Are you prepared? for English Grammar in Board Exam.


Paper Presentation In Board Exam


How to Score Good Marks in SSC Board Exams


Tips To Score More Than 90% Marks In 12th Board Exam


How to write English exams?


How to prepare for board exam when less time is left


How to memorise what you learn for board exam