Describe the ‘Law of diminishing Marginal utility’ with Example.

 Satisfaction of human wants follows some very important laws and one of them is the law of diminishing marginal utility.
The law state that,

                        “ As the amount of a good consumed increases the marginal utility of that good tends to diminish.”

For example, Suppose, a person starts eating pieces of bread one after another. The first toast gives him great pleasure. By the time he starts taking the second, the edge of his appetite has been blunted and the second toast, meeting with a less urgent want, yields less satisfaction; the satisfaction of the third will be less than that of the second; that the fourth less than that of the third, and so on. The additional satisfaction will go on decreasing with every successive toast till it drops down to zero; and if the consumer is forced to take more, the satisfaction may become negative, or the utility may change into dis utility.

The idea will be clear frame the table 1 and the figure 1(a) given bellow:-

Unit ( Toast)	Total Utility	Marginal Utility
1	20	20
2	38	18
3	53	15
4	64	11
5	70	6
6	70	0
7	62	-8
8	46	-16

The marginal utility at every step should be diminishing.

It will be seen from the table that the total utility of a quantity of a commodity is maximum when the marginal utility is zero.