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Month: January 2018

Law of Equi-Marginal Utility : Criticism and Limitation

Law of Equi-Marginal Utility : Criticism and Limitation

CRITICISMS, LIMITATIONS OR EXCEPTIONS OF LAW OF EQUI-MARGINAL UTILITY Following are the main reasons for the criticism of the Law of Equi-marginal utility by H. H. Gossen. Although, it is a basic law of economics and consumers knowingly or unknowingly are compelled, to follow this law. This law is applicable in every field of economic analysis. Advertisements

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Law of Equi-Marginal Utility : Definition and Explanation

Law of Equi-Marginal Utility : Definition and Explanation

How is Law of “Equi-marginal utility” helpful in maximizing the utility of a consumer? INTRODUCTION OF LAW OF EQUI-MARGINAL UTILITY We know that wants of every man are unlimited. Wants arise again and again but man has limited means (income) to fulfill his wants and means have , alternative uses. Thus, man always face problem of distribution of limited means of alternative uses, on his wants; so that, he may get maximum satisfaction (or utility). Law of Equi-Marginal Utility presents…

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