The Idea That the Utility a Consumer Derives from Successive

question 76

Multiple Choice

The idea that the utility a consumer derives from successive units of a good diminishes as total consumption of the good increases is known as

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

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Definitions:

Tire(s)

Rubber coverings placed on wheels of vehicles to provide traction and absorb shocks.

Gain From Trade

The benefits that parties obtain by exchanging goods or services through voluntary negotiation.

Barrels

A unit of volume measurement used in the oil industry, with one barrel equivalent to 42 U.S. gallons.

Oil

A fossil fuel used primarily for energy production and as a raw material in manufacturing.