Law of Diminishing Marginal Utility was initially propounded by a German economist H.H. Gossen but was formulated by Alfred Marshall. According to this law, as more and more units of a commodity are consumed, the MU derived from each successive (additional) units goes on declining. It is the first law of Gossen. It is the
An economy has to decide what type of goods and services are to be produced and in what quantity they are to be produced in an economy. Goods are classified in 2 types consumer goods and capital goods. Consumer goods are essential goods that help in satisfying the want and capital goods are goods which
Economics is a study of mankind which is concerned with allocation of scarce resources in such a way that producer can maximize profit, consumer can maximize satisfaction and society can maximize welfare. Adam Smith is known to be father of economics. Economics is basically made up of two Greek word ‘oikos and nomos’ which means
