Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The Law of Diminishing Marginal Utility

The presentation is to simply explain one of the most fundamental, interesting and important economic theory - The Law of Diminishing Marginal Utility.

Related Books

Free with a 30 day trial from Scribd

See all
  • Be the first to comment

The Law of Diminishing Marginal Utility

  1. 1. Law of Diminishing Marginal Utility<br />Created by Deepali Panjabi<br />Images from Google <br />
  2. 2. Definition<br />Simply put – The law of diminishing marginal utilitymeans that the first unit of consumption of a good or service yields more utility than the second and subsequent units.<br />Created by Deepali Panjabi<br />
  3. 3. We all experience it<br />While total utility keep growing with each new unit, it is growing at a reduced pace meaning that each additional unit consumed, is giving lesser and lesser satisfaction. At one point in time, if consumption doesn’t stop, utility will turn to dis-utility.<br />Created by Deepali Panjabi<br />
  4. 4. We all experience it<br />Remember a time when you had lots of ice cream. Now remember what each new scoop of ice cream you consumed felt like. <br />If you never went from ‘this feels like heaven’ to ‘I think I’m going to throw up’, you probably didn’t eat enough ice cream to experience ‘dis-utility’<br />Created by Deepali Panjabi<br />
  5. 5. Don’t try this at home ;)<br />1st Ice cream = ECSTATIC<br />Created by Deepali Panjabi<br />
  6. 6. Don’t try this at home ;)<br />1st Ice cream = ECSTATIC<br />2nd Ice cream = STILL ECSTATIC<br />Created by Deepali Panjabi<br />
  7. 7. Don’t try this at home ;)<br />1st Ice cream = ECSTATIC<br />2nd Ice cream = STILL ECSTATIC<br />3rd Ice cream = VERY HAPPY<br />Created by Deepali Panjabi<br />
  8. 8. Don’t try this at home ;)<br />1st Ice cream = ECSTATIC<br />2nd Ice cream = STILL ECSTATIC<br />3rd Ice cream = VERY HAPPY<br />4th Ice cream = HAPPY<br />Created by Deepali Panjabi<br />
  9. 9. Don’t try this at home ;)<br />1st Ice cream = ECSTATIC<br />2nd Ice cream = STILL ECSTATIC<br />3rd Ice cream = VERY HAPPY<br />4th Ice cream = HAPPY<br /> 5th Ice cream = STILL HAPPY<br />Created by Deepali Panjabi<br />
  10. 10. Don’t try this at home ;)<br />1st Ice cream = ECSTATIC<br />2nd Ice cream = STILL ECSTATIC<br />3rd Ice cream = VERY HAPPY<br />4th Ice cream = HAPPY<br /> 5th Ice cream = STILL HAPPY<br /> 6th Ice cream = NOT SO HAPPY<br />Created by Deepali Panjabi<br />
  11. 11. Don’t try this at home ;)<br />1st Ice cream = ECSTATIC<br />2nd Ice cream = STILL ECSTATIC<br />3rd Ice cream = VERY HAPPY<br />4th Ice cream = HAPPY<br /> 5th Ice cream = STILL HAPPY<br /> 6th Ice cream = NOT SO HAPPY<br /> 7th Ice cream = NOT HAPPY AT ALL<br />Created by Deepali Panjabi<br />
  12. 12. Don’t try this at home ;)<br />1st Ice cream = ECSTATIC<br />2nd Ice cream = STILL ECSTATIC<br />3rd Ice cream = VERY HAPPY<br />4th Ice cream = HAPPY<br /> 5th Ice cream = STILL HAPPY<br /> 6th Ice cream = NOT SO HAPPY<br /> 7th Ice cream = NOT HAPPY AT ALL<br />8th Ice cream = UNHAPPY<br />Created by Deepali Panjabi<br />
  13. 13. Don’t try this at home ;)<br />1st Ice cream = ECSTATIC<br />2nd Ice cream = STILL ECSTATIC<br />3rd Ice cream = VERY HAPPY<br />4th Ice cream = HAPPY<br /> 5th Ice cream = STILL HAPPY<br /> 6th Ice cream = NOT SO HAPPY<br /> 7th Ice cream = NOT HAPPY AT ALL<br />8th Ice cream = SAD<br /> 9th Ice cream = SICK<br />Created by Deepali Panjabi<br />

    Be the first to comment

    Login to see the comments

  • SubhanAdil

    May. 13, 2017
  • KrushilSudani

    Jul. 15, 2017
  • SushilKumarYadav1

    Sep. 12, 2017
  • Samarpita55555

    Oct. 5, 2017
  • sreeharshasree1

    Nov. 18, 2017
  • zafarkhan166

    Mar. 31, 2018
  • JenniferPascua4

    Aug. 9, 2018
  • MadeehaNaseer1

    Oct. 16, 2018
  • pravinmore34

    Sep. 23, 2019
  • InampudiRaviteja

    Oct. 26, 2019
  • AadilMalek

    Nov. 25, 2019
  • AheeshMuralidhar

    Nov. 25, 2019
  • SheileeBissessur

    Apr. 10, 2020
  • VijendraKumar64

    Apr. 14, 2020
  • tanyasingh249

    May. 7, 2020
  • KeerthanaCholakulangara

    Jun. 22, 2020
  • TAPANKUAMRBARIK

    Jul. 24, 2020
  • SurendraBesta

    Jul. 30, 2020
  • MustafaSharieff

    Jun. 11, 2021
  • TenIntop

    Jul. 17, 2021

The presentation is to simply explain one of the most fundamental, interesting and important economic theory - The Law of Diminishing Marginal Utility.

Views

Total views

6,116

On Slideshare

0

From embeds

0

Number of embeds

5

Actions

Downloads

276

Shares

0

Comments

0

Likes

29

×