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

Question

Quizplus · Accepted Answer

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 diminishing marginal utility. As a consumer consumes more and more of a good, the additional satisfaction or utility derived from each additional unit of the good decreases.

The Idea That the Utility a Consumer Derives from Successive