Which Assumption or Assumptions Permits the Derivation of the Existence

question 36

Multiple Choice

Which assumption or assumptions permits the derivation of the existence of a continuous utility function?

• A) both rationality and continuity assumptions
• B) only rationality assumptions
• C) only continuity assumptions

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Definitions:

Liquidated

The process of converting assets into cash or cash equivalents by selling them in order to pay off debts and liabilities.

Preferred Stockholders

Investors who own shares in a company that have preferential rights over common stockholders, typically regarding dividends and assets upon liquidation.

Common Stockholders

Individuals or entities that own common stock in a company, granting them voting rights and a share in the company's profits through dividends.

Paid-in Capital

The amount of money that a company receives from selling its stock directly to investors, above the par value of the shares.