Indifference Curves Cannot Intersect Because

question 53

Multiple Choice

Indifference curves cannot intersect because:

• A)consumers are indifferent between two consumption bundles.
• B)that would violate the assumption of nonsatiation.
• C)each person has a different set of indifference curves.
• D)indifference curves are two-dimensional.

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Definitions:

Economic Theory

A set of principles and models that explains how economies operate and how economic agents interact.

Total Profit

The difference between a firm's total revenue and its total costs, indicating the overall financial gain from its business activities.

Principle of Marginal Analysis

The principle of marginal analysis involves making decisions based on the additional benefits and costs of an action compared to its alternatives.

Expected Exam Scores

The anticipated average or range of marks a student or group of students is predicted to achieve in an examination.