The law of diminishing marginal utility says that as you consume more of something the satisfaction that you get from each additional unit .?

Auuumptions:

This law is based on following assumptions and this law is applicable only if these assumptions are true. There are following:

1: Continuous use: It is assumed that the unit of commodity should be used continuously. If there is interval between the consumption of the same units then this law will not applicable.

2: Reasonable units: It is also assumed that the units of commodity which are used should be suitable and reasonable. if the units are too small, then law will not be operate.

3: Nature of commodity: It is also assumed that the income of the consumer should not change. Otherwise this law will not operate.

4: No Change in fashion: It is also assumed that there should be not change in fashion. If there is a sudden change in fashion then this law will not be operate.

5: No change in prices of substitutes: There should be no change in prices of substitutes. If the price of substitute change then demand of the commodity increases and this law will not be true.

6: No change in taste: There should be no change in the taste of consumer. For example if a consumer develops the taste of wine, then every next unit of wine increase marginal utility, which is against of our law.

7: No change in weather: Another assumption is that the weather will be remains unchanged. If weather changed then demand of certain commodity changes and this law will not be operated.

8: Rare Collection: The law does not apply in the case of rare collections. If a person has a hobby of collecting rare coins, the larger number he collects the greater will be his happiness, whereas according to this law it should be less and less,