Which of the following is NOT an assumption of marginal utility theory?
A) People derive utility from their consumption.
B) More consumption yields more total utility.
C) Marginal utility diminishes with more consumption.
D) Utility can be measured and the units of utility are precisely defined.

Question

Quizplus · Accepted Answer

Marginal utility theory assumes that utility can be measured, but it does not require that the units of utility are precisely defined or universally consistent.

Which of the Following Is NOT an Assumption of Marginal