The law of diminishing marginal utility states that as consumption of a good increases, the utility from each additional unit decreases. As a consumer consumes more units of a good, their total utility increases but at a decreasing rate. The marginal utility of each additional unit becomes less and less intense until a point of full satisfaction is reached, after which total utility decreases and marginal utility becomes negative. The law assumes units are homogeneous, consumption is continuous, the consumer is rational, and tastes and preferences remain constant.

1. LAW OF DIMINISHING MARGINAL UTILITY Law describes that, we obtain less and less utility fromthe successive unit of a commodity as we consumemore and more of it, other things remaining same.

2. Explanation to law:- -As the consumer consumes more, his total utility will increase but at a decreasing Rate. It is natural, that when a consumer consumes additional units of a particular Good at a point of time, his desire for every successive unit become less intense. - A fundamental feature of wants which is that, every wants need to be satisfied only up to a limit. After this limit is reached, the intensity of our wants becomes ZERO. - This position is called complete satisfaction, i.e. as e consume more and moreunits of a commodity to satisfy our needs, the intensity of our wants become less &less.

3. Table 1 TU= total utility, MU=marginal utility

6. There is no time gap between consumption of the different units.