The law of diminishing marginal utility States that

The law of diminishing marginal utility States that if someone has similar units of consumption of certain goods, the marginal benefit increasing first then decreasing after a certain limit to zero and then becomes negative. In the previous table, we noticed that the marginal benefit increases that reached the highest value in the third unit, consumption and declining to zero when the consumption module VII then became negative, but quickly declining marginal benefit varies according to the nature of the goods in question and the law of diminishing marginal utility is important in explaining consumer behavior and determine the level of balance which maximize benefit to the consumer.

The law of diminishing marginal utility: utility College rises the more consumption, but they are rising at a rate decreasing continuously. The study of consumer behaviour on the basic assumption is that a rational person consumer seeks to maximize the utility of consumption of various goods and services which reach the maximum possible saturation, and distributes various goods limited income so as to achieve the greatest benefit possible in light of the potential for this situation to be costeffective police following: 1. be of marginal utility to the last dinar spent on item 1 (a) equals the marginal benefit of the dinar last spent on item 2 (b), which is equal to the marginal utility of a dinar spent on all goods consumed by the consumer.

Marginal utility is measured for a dinar spent on a commodity as follows Almnfhhalhadet dinar = marginal utility of goods ----------Item price If the consumer consumes the commodities only, the requirement of the above balance is: Marginal benefit for the first item (a) of marginal utility of goods II (b) --------------- = --------------Item price (a) item price (b) 2. consumer to spend all their income to buy consumer goods that is: Income = [item amount (a) x the price of a product (a)] + [quantity item 2 (b) × price (b)] To illustrate the use the following example: I assume that the benefits obtained as a result of consumption of consumer commodities are the (x, y) as shown in the table (3): .

Cough( y) Marginal utility 50 40 30 20 15 10 5 0 Quantity 1 2 3 4 5 6 7 8 Cough (x) Marginal utility 35 30 25 20 15 40 35 30 25 20 15 5 Quantity 1 2 3 4 5 6 7 8