1 Explain the use of the therapeutic ratings system in determining whether 1 drug can be appropriately substituted for another of the same therapeutic class.  Define some appropriate and inappropriate substitutions for commonly prescribed antihypertensive agents.
Definition and Statement of the Law: The law of diminishing marginal utility describes a familiar and fundamental tendency of human behavior. The law of diminishing marginal utility states that: As a consumer consumes more and more units of a specific commodity, the utility from the successive units goes on diminishing. Mr. H. Gossen, a German economist, was first to explain this law in 1854.
Assume the consumer utility function is defined by, where U is consumer utility, x and y are goods. Then the marginal rate of substitution can be computed via partial differentiation, as follows. Also, note that: where is the marginal utility with respect to good x and is the marginal utility with respect to good y.or example, if the MRS xy = 2, the consumer will give up 2 units of Y to obtain 1 additional unit of X. As one moves down a (standardly convex) indifference curve, the marginal rate of substitution decreases (as measured by the absolute value of the slope of the indifference curve, which decreases).