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DMU |
Also found in: Financial, Encyclopedia, Wikipedia, Hutchinson | 0.02 sec. |
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The labor theory of value doesn't take into account the well-established law of diminishing marginal utility, which states that the value to the customer declines with additional consumption of the good in question. If relative standards of well-being do indeed matter more than absolute standards above a certain minimum threshold, then the fundamental microeconomic assumption of diminishing marginal utility will have to be reexamined. |
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