Law of Diminishing Marginal Utility

At which rasgulla did marginal utility become zero?

Answer explanation

Marginal utility = 0 at the 4th rasgulla

At which rasgulla did marginal utility turn negative?

Answer explanation

Marginal utility becomes negative at the 5th rasgulla.

At which rasgulla did total utility reach its maximum?

Answer explanation

Total utility is maximum after the 4th rasgulla

If each rasgulla costs ₹10, how many should Ravi have ideally eaten? Why?

Answer explanation

Ideally, Ravi should eat 4 rasgullas, because consuming more gives no extra benefit and could lower overall satisfaction.

Which economic law is demonstrated by Ravi’s experience?

Answer explanation

This demonstrates the Law of Diminishing Marginal Utility.