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.

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Definitions:

Information Distribution

The process of disseminating or spreading information among a group or over a network, ensuring accessibility and understanding by intended audiences.

Retina

A layer of cells at the back of the eye, sensitive to light, which triggers nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.

Electromagnetic Energy

A form of energy that is reflected or emitted from objects in the form of electrical and magnetic waves that can travel through space.

Neural Impulses

Electrical signals transmitted along the neurons, facilitating communication between the brain and other parts of the body.