The basis of consumer surplus, according to Marshall, is:
Welcome to Answerclub.org
Questions | Answers | Discussions | Knowledge sharing | Communities & more.
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Questions | Answers | Discussions | Knowledge sharing | Communities & more.
The Law of Diminishing MU, according to Marshall, is the foundation of consumer surplus. According to the law, the marginal utility of a commodity decreases as we buy more of it. We obtain more utility for all units of the commodities we buy because the price is set. This extra utility is referred to as “consumer surplus.”