Following are the assumptions of the law of diminishing marginal utility:
- The quality of the successive units of goods should remain the same, changes in the quality of the product may not be helpful in proving the law.
- Consumption of goods should be continuous, any long gap in the consumption will alter the law.
- There should be no change in the mental outlook of the consumer.
- The number of units of the good in question should not be very less, it will result in a less accurate inference of the law.
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