Can We Measure Satisfaction Or Utility? Can we measure satisfaction or utility? In the real world, one cannot always measure utility. One cannot add different types of satisfaction from different goods. For measuring it, it is assumed that utility of consumption of one good is independent of that of another. It does not analyze the
What Does The Law Of Diminishing Returns State? What does the law of diminishing returns State? The law of diminishing returns is an economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a
What Economic Concept Does Considering One Additional Unit Of A Product Represent? What economic concept does considering one additional unit of a product represent? In economics, the marginal cost of production is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in