Indifference Theory Is Based on the Assumption That

question 43

Multiple Choice

Indifference theory is based on the assumption that

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

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Definitions:

Biological Clocks

Internal mechanisms in organisms that control the timing of biological functions and behaviors, helping to adapt to the day-night cycle.

Hormone

Chemical substances produced in the body that regulate and control the activity of certain cells or organs.

Circadian Rhythm

The internal body clock that regulates the 24-hour cycle of biological processes, including sleep-wake patterns.

Exposure To Light

The condition of being subjected to light, which can affect various biological processes, including sleep cycles and mood.