a. State
and explain the law of diminishing marginal utility and do the same for the law
of...

Question

a. State
and explain the law of diminishing marginal utility and do the same for the law
of diminishing returns.
b. Identify and explain two similarities and two
differences between these two laws.
c. Then,
provide three real world example of each law from your own personal or
professional life.

David · Accepted Answer

Law of diminishing marginal utility means that consumption of additional quantity of a good 
gradually gives lesser additional utility. Goods are purchased because of their ability satisfy 
our wants. The want satisfying power of a good is called utility. As individuals consume 
more of a good per time period, the total utility they derive from the good increases, but their 
marginal utility diminishes.  
The law of diminishing returns explains that returns from additional unit of variable inputs 
declines when more of variable, specifically labour, input are added with a fixed capital or 
other inputs.

a. State and explain the law of diminishing marginal utility and do the same for the law of diminishing returns. b. Identify and explain two similarities and two differences between these two laws. c....

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