A Basic Hypothesis of Marginal Utility Theory Is That the Utility

question 49

Multiple Choice

A basic hypothesis of marginal utility theory is that the utility a consumer derives from successive units of a good diminishes as total consumption of the good increases.This hypothesis is known as

• A)the utility theory of demand.
• B)the law of diminishing marginal utility.
• C)utility maximization.
• D)the law of diminishing total utility.
• E)the paradox of value.

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Definitions:

Steepest Decline

describes the fastest decrease or most significant drop in a value or quantity over a specific period.

Peer Affiliation

The process of forming connections and relationships with individuals who are of similar age or have similar interests, often critical during adolescence.

Academic Achievement

The extent to which a student, teacher, or institution has achieved their short or long-term educational goals, commonly measured by standardized tests or grades.

High School

A phase of secondary education that follows middle school and prepares students for higher education or the workforce, usually encompassing grades 9 through 12 in the United States.