Question

Explain with reasons whether you 'agree' or 'disagree' with the following statement:
The law of diminishing marginal utility can be explained with the help of schedule and diagram.

Answer 1

Law of diminishing marginal utility states that as the consumption of a commodity rises, marginal utility tends to fall. It is known as the fundamental psychological law.

Unit of Consumption	Marginal Utility	Total Utility
1	20	20
2	15	35
3	10	45
4	05	50
5	00	50
6	-05	45