Which of the Following Is NOT an Assumption of Marginal

question 286

Multiple Choice

Which of the following is NOT an assumption of marginal utility theory?

• A) A consumer derives utility from the goods consumed.
• B) Each additional unit of consumption yields additional utility.
• C) Consumers maximize their total utility.
• D) As more of a good is consumed, the decrease in the marginal utility from the good means that the total utility from the good decreases also.

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Definitions:

Accord And Satisfaction

An agreement for payment (or other performance) between two parties, one of whom has a right of action against the other. After the payment has been accepted or other performance has been made, the “accord and satisfaction” is complete, and the obligation is discharged.

Legal Claim

A formal assertion by a party that they are entitled to some legal right or remedy.

Enforceable

Capable of being imposed or upheld by legal process or authority.

Release

A contract in which one party forfeits the right to pursue a legal claim against the other party.