Question

Which of these is not an essential assumption of law of diminishing marginal utility concept?

• A. Different units consumed should be identical
• B. Consumers taste and preference should not change
• C. There should be some time gap between consumption
• D. The different units consumed should consist of standard unit

Answer 1

The correct option is C There should be some time gap between consumption

One of the assumption of law of diminishing marginal utility is that the consumption should be continuous. For example, to hold the law of diminishing marginal utility a consumer should consume ice-creams continuously at a particular point of time.