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State with Reason Whether You Agree Or Disagree: Law of Diminishing Marginal Utility is Important in Practice. - Economics

Answer in Brief

State with reason whether you agree or disagree:

Law of Diminishing Marginal utility is important in practice. 

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Solution

Law of Diminishing Marginal utility is important in practice. - Agree

Explanation: Yes, the law of diminishing marginal utility is important in practice. The following are some of the points that highlight the importance of the law. i. This law helps the consumers in budget planning. ii. It helps the producers in determining various policies such as the price and sales policies. iii. Keeping in consideration this law, a monopolist can easily follow the price discrimination policy. iv. Formulate and implement appropriate policy decisions.

Concept: Diminishing Marginal Utility
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APPEARS IN

Micheal Vaz Economics HSC 12th Standard Maharashtra State Board
Chapter 2 Consumer's Behavior
Exercise | Q 2.3 | Page 17
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