The Concept of Diminishing Marginal Utility

question 49

Multiple Choice

The concept of diminishing marginal utility:

• A) explains why individuals rarely maximize their total utility.
• B) is the change in total utility that comes from consuming one additional unit of a good or service.
• C) is the principle that the additional utility gained from consuming successive units of a good or service tends to be smaller than the utility gained from the previous unit.
• D) is the principle that the additional utility gained from consuming different bundles of goods and services tend to be smaller than the utility gained from consuming just one bundle of goods and services.

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Definitions:

Corporate Leaders

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Communication

The process of transferring information, ideas, and understanding from one person or group to another.

Emotions

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Readiness

The state of being fully prepared for specific actions or changes.