LIMITATION OF THE LAW

Limitations of the Law
The law of diminishing marginal utility is applicable only under certain assumptions.

(i) Homogenous units: The diuerent units consumed should be identical in all respects. The habit, taste, temperament and income of the consumer also should remain unchanged.

(ii) Standard units of Consumption: The diuerent units consumed should consist of standard units. If a thirsty man is given water by successive spoonfuls, the utility of the second spoonful of water may conceivably be greater than the utility of the first.

(iii) Continuous Consumption: There should be no time gap or interval between the consumption of one unit and another unit i.e. there should be continuous consumption.

(iv) The Law fails in the case of prestigious goods: The law may not apply to articles like gold, cash, diamonds etc. where a greater quantity may increase the utility rather than diminish it. It also fails to apply in the case of hobbies, alcohol, cigarettes, rare collections etc.

(v) Case of related goods: Utility is not in fact independent. The shape of the utility curve may be auected by the presence or absence of articles which are substitutes or complements. The utility obtained from tea may be seriously auected if no sugar is available and the utility of bottled soft drinks will be auected by the availability of fresh juice.

(vi) Based on unrealistic assumptions: The assumptions of cardinal measurability of utility, constancy of marginal utility of money, continuous consumption and consumer rationality are unrealistic.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA