Difference between Diminshing marginal utility and Dimishing Marginal rate of substitutio.For 4 marks

Dear student, 

Marginal utility refers to the utility derived from the consumption of each additional unit of the output. As the consumer consumes more and more units of a commodity the utility derived from the additional units keeps on falling/diminishing. 

On the other hand, Marginal Rate of Substitution refers to the rate at which the consumer is willing to sacrifice one good for each additional unit of the other good. As the consumer consumes more of one good the amount of other good that the consumer is willing to sacrifice keeps on falling. The concept of diminishing marginal rate of substitution is derived from the concept of diminishing marginal utility. 

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