Indifference Curves Must Be Concave to the Origin Because the Satisfaction

question 303

True/False

Indifference curves must be concave to the origin because the satisfaction consumers get from consuming additional units of a good declines.

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Definitions:

Alternatives

Different choices or options available to a decision-maker in a decision-making process.

Potential Benefit

The anticipated advantage or value that might be gained from a particular action or investment, not assured but possible.

Direct Cost

Expenses that can be directly traced to the production of specific goods or services, such as raw materials and direct labor.

Instructor's Salary

The compensation, often periodic, given to a teacher or educator for their services.