Indifference Theory Is Based on the Assumption That

question 77

Multiple Choice

Indifference theory is based on the assumption that

• A)consumers are not able to rank consumption bundles in order of preference.
• B)consumers can always say which of two consumption bundles they prefer without having to say by how much they prefer it.
• C)the consumer has equated the marginal utilities of all products,and is therefore indifferent between consumption bundles.
• D)the consumer is able to quantify the difference in total utility received from two different consumption bundles.
• E)the consumer receives the same utility and is therefore indifferent between any two consumption bundles.

---

Definitions:

Co-workers

Individuals who work together in the same organization or workplace.

Negligent

Failure to take proper care in doing something, leading to damage or harm to another person.

Agency

A relationship between two parties, where one, the agent, is authorized to act on behalf of the other, the principal, in legal or business matters.

Modern Firms

Refers to contemporary businesses characterized by innovative practices, technology use, and agile structures.