Question

Which of the following assumption is NOT applicable for the law of diminishing marginal utility?
(i) All the units of the given commodity are heterogeneous.
(ii) The units of consumption are of unreasonable size.
(iii) The consumer is rational human being and he aims at minimization of satisfaction.

• A. (i)
• B. (ii)
• C. (iii)
• D. All of the above

Answer 1

Answer: (D)

All of the above

Assumptions of law of diminishing marginal utility are:

1)Given commodities should be homogeneous in nature.

2)Reasonable sized units are to be consumed.

3)Consumer always want to maximize his utility with his given income and market prices of the commodities.