What is DMU ❓plz explain in …

Concept of Law of Diminishing Marginal Utility

Law of Diminishing Marginal Utility (DMU) states that as we consume more and more units of a commodity, the utility derived from each successive unit goes on decreasing. People spend their income on various goods because consuming more and more of any one good reduces the marginal satisfaction obtained from further consumption of the same good. Law of DMU has universal applicability and applies to all goods and services.

Assumptions

• All the units of a commodity are same in terms of size, quality, design etc
• Unit of a good must be standard
• No change in taste
• No change in the price of substitute goods
• Continuity in consumption.

 

<th colspan="1" data-order="<div class="DataTables_sort_wrapper"><span class="DataTables_sort_icon"></span></div>" data-original-value="<div class="DataTables_sort_wrapper"><span class="DataTables_sort_icon"></span></div>" rowspan="1"> </th> <th colspan="1" data-order="<div class="DataTables_sort_wrapper"><span class="DataTables_sort_icon"></span></div>" data-original-value="<div class="DataTables_sort_wrapper"><span class="DataTables_sort_icon"></span></div>" rowspan="1"> </th> <th colspan="1" data-order="<div class="DataTables_sort_wrapper"><span class="DataTables_sort_icon"></span></div>" data-original-value="<div class="DataTables_sort_wrapper"><span class="DataTables_sort_icon"></span></div>" rowspan="1"> </th>

Unit of Orange	Total Utility	Marginal Utility
1	10	10 (10-0)
2	18	8 (18-10)
3	24	6 (24-18)
4	28	4 (28- 24)
5	30	2 (30-28)
6	30	0 (30-30)
7	28	-2(28-30)