What Is The Law Of Diminishing Utility?

The Law Of Diminishing Utility is an important concept of Economics. According to this law, as the consumption of a product increases, there is a decline in the marginal utility from consuming each additional unit of that product, prior to the assumption that the consumption of other products is constant. This is similar to the fact that if we have had a large cup of ice-cream and we found it great. When we ask for another cup and start eating it, it does not taste as great as it tasted before. Thus with each spoon you eat the marginal utility of ice-cream decreases.