PRINCIPLE OF DIMINISHING MARGINAL UTILITY:

                              The more of a good that one obtains in a specific period of time, the less the additional utility derived from an additional unit of the good.That means as we consume anything more the utility we obtained from that product is less when compared to the utility obtained from the product we consumed before.

EXAMPLE: If we consume one apple we get 20 units of marginal units and we consume 2nd apple we get 18 units of marginal utility.That means as we consume more number of apples we get less units of marginal utility.Because, if we consume one apple it tastes more, but if we consume 2nd apple it tastes little less when compared to 1st one and if we consume 3rd apple it tastes was very less when compared to 2 apples we consumed before.Like that as we consume more apples at a time we cannot feel good taste as we get from the first apple.This can be shown clearly in the following:

          NO. OF APPLES       MARGINAL UTILITY
                    1                                 20
                    2                                 18
                    3                                 16
                    4                                 14
                    5                                 12

From the above, we know that as the consumption of units are increasing the marginal utility was decreasing when compared to the amount of utility we obtained earlier.