A Basic Hypothesis of Marginal Utility Theory Is That the Utility

question 67

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

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Definitions:

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs to inputs in a production process.

Per Unit

A measurement specific to one unit of a good or service, indicating cost, price, or quantity related to a single unit.

Output

The total amount of goods or services produced by a company or country.

Input

Resources used in the production process, including labor, raw materials, and capital.