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.

Question

Quizplus · Accepted Answer

The idea of diminishing marginal utility states that as a consumer consumes more and more units of a good, the additional satisfaction or utility gained from each additional unit decreases. This concept is an essential part of the utility theory of demand and helps explain why consumers are willing to pay less for each additional unit of a good.

The Idea That the Utility a Consumer Derives from Successive