The Basic Assumptions for Preferences Used in Utility Functions Include

question 14

Multiple Choice

The basic assumptions for preferences used in utility functions include all of the following EXCEPT

• A)preferences are variable
• B)preferences are transitive
• C)preferences are complete
• D)marginal utilities are generally positive

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Definitions:

Ordinary Consumer

A term used to refer to an average person who buys goods and services for personal use.

Strict Product Liability

holds manufacturers, distributors, and sellers liable for damages caused by defects in their products, regardless of negligence or fault.

Plaintiff

An individual or entity that initiates a lawsuit or legal action against another party, known as the defendant.

Defective

Pertains to a flaw or deficiency in a product that makes it unsafe or unfit for its intended use.