A Basic Hypothesis of Marginal Utility Theory Is That the Utility

question 57

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

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Definitions:

Sample Mean

The average value obtained from a sample, calculated by summing all observations and dividing by the number of observations.

Resamples

In statistics, the process of generating a new sample from an original dataset by methods such as bootstrapping or jackknifing.

Distinct Resamples

Unique subsets of data selected from a larger dataset, often used in bootstrap and other resampling techniques to estimate statistical precision.

Likely

A term indicating that something has a high probability of occurring or being the case.