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:

Anticline

An anticline is a geological fold with layers that curve upward, typically associated with areas of tectonic compression.

Folding

The bending of the Earth's crust which can create mountains and valleys as a result of tectonic forces.

Compression

In geology, compression refers to the force or stress that pushes materials together, leading to folding, faulting, or shortening in the Earth's crust.

Tension

The force applied on a material that stretches it apart, often leading to geological features such as rift valleys or the expansion of ocean basins at divergent boundaries.