The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously, his?
Answer Details
The law of diminishing marginal utility states that as a consumer continues to increase their consumption of a commodity, the additional satisfaction or utility they receive from each additional unit consumed eventually begins to decrease. Therefore, if a consumer increases their consumption of a commodity continuously, their marginal utility must fall. This means that the additional satisfaction or utility gained from each additional unit consumed will decrease over time. However, it is important to note that their total utility may still be increasing, even though their marginal utility is falling, until it eventually reaches a maximum point and then begins to decline as well.