If a Consumer Would Rather Eat Three Bars of Chocolate

question 58

Multiple Choice

If a consumer would rather eat three bars of chocolate than four bars of chocolate, this consumer's preferences violate which of the following key assumptions?

• A)Completeness
• B)Transitivity
• C)More is better
• D)Both completeness and transitivity

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Definitions:

Depreciation Costs

The allocation of the cost of an asset over its useful life, reflecting the decrease in value due to wear and use.

Cost Of Capital

The rate of return that a company must offer investors to finance its assets, often used in making investment decisions.

Incremental Cash Flows

The additional cash flow a company receives from taking on a new project or making a financial decision.

Initial Outlay

The initial investment amount or the upfront cost required to start a project or investment.