An indifference curve represents the different combinations of two items that will provide the customer with an equal degree of satisfaction. As a result, an indifference curve may be described as a locus of all the points expressing different. Combinations…
So far we have covered two important topics of Cardinal Utility Approach and Total and Marginal Utility. Now, it is time to expand our discussion further. So, we will discuss the law of diminishing marginal utility. According to the law,…
Total utility is the quantity of utility deriving from consumption at a specific time of all units available to the user.The utility of an extra or additional Unit is the marginal utility. At this moment, the buyer hesitates whether it…