UTILITY & MARGINAL UTILITY

UTILITY:-

The consumer satisfaction is called as UTILITY in economics.

Eg:- 

1. If Apple is your favourite fruit then, the satisfaction you get by consuming apple is called as Utility from Apple.
2. If you love to ride Royal Enfield bike then, the satisfaction you get by riding Royal Enfield is called as Utility from royal enfield.
3. If you love to have Grape juice then, the satisfaction you get by drinking Grape juice is called as Utility from Grape juice.
4. Generally all the hobbies of an individual gives satisfaction for him/her. Therefore the satisfaction is called as Utility in Economic terminology.

MARGINAL UTILITY:-

The Consumer's Additional Utility generated by consuming the additional unit is known as Marginal Utility.

Eg:-

1. The difference between the utility you get from consuming first apple and consuming second apple is called as Marginal Utility.
2. The difference between the utility you get from drinking first Grape juice and second grape juice is called as Marginal Utility.
3. The difference between the utility you get while riding bike in the initial stages and after some period of time is called as Marginal Utility.
4. The Marginal Utility of all the events will get reduced when the no of units consumed are increasing.
5. Even the person with High Drinking Capacity will gets saturated at certain point of time and will not be in a situation to consume next round of Alcohol.

Therefore, There is No Exception for Law of Diminishing Marginal Utility.