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.

Question

Quizplus · Accepted Answer

The hypothesis that the utility a consumer derives from successive units of a good diminishes as total consumption of the good increases is known as the law of diminishing marginal utility. This is a basic principle of marginal utility theory.

A Basic Hypothesis of Marginal Utility Theory Is That the Utility