diminishing marginal utility Flashcards
1
Q
what is the law of diminishing marginal utility
A
when more of a product is consumed, the additional benefit to the consumer reduces so the customers are willing to pay less.
2
Q
what does the law of diminishing marginal utility justify?
A
the inverse proportionality in the demand curve
3
Q
if diminishing marginal utility sets in after the 3th product where should you write the marginal utility
A
between the 3rd and the 4th products(in the marginal utility colum) if you write it next to the 3rd you’re not talking about the marginal utility between the 3rd and 4th but the mar.ut of the 3rd (refer tute for further)
4
Q
what is the equation for marginal utility
A
marginal utility= change in total utility/change in units consumed.
