In “ Diminishing Marginal Utility: It\'s a Law ,” a writer for the Ludwig von Mi
ID: 1215844 • Letter: I
Question
In “Diminishing Marginal Utility: It's a Law,” a writer for the Ludwig von Mises Institute explains the concept of diminishing marginal utility, gives a detailed example, and then concludes that the law of diminishing marginal utility is “irrefutably true.” In “The Law of Diminishing Marginal Utility and Debt Repayment” the author argues that each unit of debt he repays brings him greater additional happiness, therefore violating the “law” of diminishing marginal utility.
Which blog post do you find more convincing? Why?
Explanation / Answer
I found the article “Diminishing Marginal Utility: It's a Law more convincing because the arguments given by the writer applies for almost all goods in general. On the other hand, in the article “The Law of Diminishing Marginal Utility and Debt Repayment the author gives examples, which are violations of the law. But these does not hold true always in all scenarios. All the rules and laws have exceptions and economic theory is based on assumptions. We need some assumptions to establish new rules and make models and law of diminishing marginal utility is one of them.