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

Question

Quizplus · Accepted Answer

Diminishing marginal utility is the concept that as a consumer consumes more and more units of a good, the additional utility gained from each additional unit begins to decrease. This can lead to a decrease in willingness to pay for additional units of the good, which in turn affects consumer behavior and demand.

The Idea That the Utility a Consumer Derives from Successive