Assumptions of the Law of Diminishing Marginal Utility

The law of diminishing marginal utility is conditional. Its validity is attributed to the following assumptions or conditions: 

1. Homogeneity: 

The law holds true only if all the successive units taken in the process of consumption are homogeneous in character like quality size, taste, flavors, colour etc. If there is a change in the characteristics of the units of the given commodity, it is quite likely that the marginal utility may tend to increase rather than diminish with the successive addition unit of consumption.

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