Business Economics

1: Law of diminishing marginal utility is based on the assumption that a. Tastes change over time b. Consumption is continuous c. Different units of goods consumed are homogeneous
Of these statements:

A.	Only a is true
B.	a and c are true
C.	b and c are true
D.	All are true
	Answer : D Explanation : Law is Based Upon Three Facts: The law of diminishing marginal utility is based upon three facts. First, total wants of a man are unlimited but each single want can be satisfied. As a man gets more and more units of a commodity, the desire of his for that good goes on falling. A point is reached when the consumer no longer wants any more units of that good. Secondly, different goods are not perfect substitutes for each other in the satisfaction of various particular wants. As such the marginal utility will decline as the consumer gets additional units of a specific good. Thirdly, the marginal utility of money is constant given the consumer’s wealth. Write your comments here: Updating your Comments.. Updating your Comments.. Report Error
	Option: A Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here.

Sample Online Test

GK Test 4 Statement & Argument Numerical Reasoning Psychometric Online Test 1

UGC NET Paper 1 UGC NET Computer Science UGC NET Exam GATE Exam Aptitude Viva Questions General Knowledge Computer Questions Online Test

Business Economics

Sample Online Test

Suggest an improvement