Final answer:
Utility refers to a person's derived C. satisfaction from consuming a good. As a person receives more of a good, the additional utility from each additional unit of the good declines.
Step-by-step explanation:
Utility refers to a person's derived satisfaction from consuming a good. Economists assume that the more of a good one consumes, the more utility one obtains. However, the law of diminishing marginal utility states that as a person receives more of a good, the additional utility from each additional unit of the good declines.
In economics, utility has several uses: it helps explain consumer choices, measure welfare, guide production decisions, and assess the overall satisfaction or well-being gained from the consumption of goods and services within an economic system.