{"id":3254,"date":"2021-06-30T18:45:36","date_gmt":"2021-06-30T13:15:36","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=3254"},"modified":"2025-10-07T12:28:16","modified_gmt":"2025-10-07T06:58:16","slug":"assumptions-of-law-of-diminishing-marginal-utility","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/assumptions-of-law-of-diminishing-marginal-utility\/","title":{"rendered":"Assumptions of Law of Diminishing Marginal Utility (DMU) | Free Economics Articles"},"content":{"rendered":"\n

Assumptions of Law of Diminishing Marginal Utility<\/mark><\/h2>\n\n\n\n

What are the Assumptions of the law of diminishing marginal utility?<\/mark><\/h3>\n\n\n\n

Introduction:
<\/strong>This law was first proposed by Prof. Gossen but was discussed in detail by Prof. Alfred Marshall in his book \u2018Principles of Economics\u2019 published in 1890. The law of diminishing marginal utility is universal in character. It is based on the common consumer behaviour that utility derived diminishes with the reduction in the intensity of a want.<\/p>\n\n\n\n

Statement of the Law of DMU:<\/strong>
According to Prof. Alfred Marshall, \u201cOther things remaining constant, the additional benefit which a person derives from a given increase in his stock of a thing, diminishes with every increase in the stock that he already has.\u201d<\/p>\n\n\n\n

In other words, a marginal utility that any consumer derives from successive units of a particular commodity goes on diminishing as his or her total consumption of that commodity increases. In short, the more of a thing you have, the less you want to have more of it.<\/p>\n\n\n\n