Utility Theory Assumes That Marginal Utility

question 43

Multiple Choice

Utility theory assumes that marginal utility:

• A) increases as an individual consumes more of a product.
• B) decreases as an individual consumes more of a product.
• C) is zero as long as the individual derives utility from the product.
• D) is constant as long as the individual derives utility from the product.

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Definitions:

Rhetoric

The art of effective or persuasive speaking or writing, especially the use of figures of speech and other compositional techniques.

Well-crafted Argument

A logical and coherent presentation of ideas, supported by evidence, leading to a convincing conclusion.

Causal Argument

An argument that claims something is (or is not) the cause of something else.

First Cause

A philosophical concept referring to the initial cause of a chain of events, often discussed in the context of the origin of the universe.