Question : According to one of the assumption of Law of Diminishing Marginal Utility, there should be _______________between the consumption of one unit and another unit.
Option 1: Equal time gap
Option 2: No time gap
Option 3: Long time gap
Option 4: Any of these
Correct Answer: No time gap
Solution : The correct answer is (b) No time gap.
According to the assumption of the Law of Diminishing Marginal Utility, there should be no time gap between the consumption of one unit and another unit. This assumption implies that the units of a commodity are consumed one after another without any significant delay or interruption. This allows for the observation of the diminishing marginal utility, as the satisfaction or utility derived from each additional unit tends to decrease.
Question : The law of diminishing marginal utility states that:
Option 1: Marginal utility increases as consumption increases
Option 2: Total utility decreases as consumption increases
Option 3: Marginal utility decreases as consumption increases
Option 4: Total utility remains constant as consumption increases
Question : What is the First Law of Gossen?
Option 1: Law of Equi-marginal utility
Option 2: Law of Diminishing marginal utility
Option 3: Law of supply
Option 4: Law of demand
Question : According to the law of diminishing marginal utility, as a consumer consumes more of a good:
Option 1: The total utility derived from the good increases at a decreasing rate.
Option 2: The marginal utility derived from the good increases at a decreasing rate.
Option 3: The total utility derived from the good decreases at a decreasing rate.
Option 4: The marginal utility derived from the good decreases at a decreasing rate.
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