LAW OF DIMINISHING MARGINAL UTILITY
Satisfaction of human wants follows some very important laws and one of them is the Law of Diminishing Marginal Utility. Tile law refers to the common experience of every consumer. Suppose ‘a person starts eating pieces of bread one after another. The first toast gives him great pleasure. By the time e starts taking the second, the edge of his appetite has been blunted. and the second toast, meeting with a less urgent want, yields less satisfaction; the satisfaction of the third will be less than that of the second; that of the fourth less than that of the third, and so on. The additional satisfaction will go on decreasing with every successive toast till it drops down to zero if the consumer is forced to take more, the satisfaction may become negative, or the utility may change into dis utility .
The idea will be dear from the table the given below.
These figures arc merely illustrative representations of the amount of utility. Any other figures may be taken. provided variations in the amount of utility arc similar those in the following table: