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You Like Bundle a Better Than Bundle B,and Bundle C

question 14

Essay

You like bundle A better than bundle B,and bundle C is an average of bundles A and B.Which of the following is correct if your tastes satisfy our usual assumptions?
a.
Bundle C is at least as good as bundle B.
b.
Bundle A is at least as good as bundle C.
c.
Both (a)and (b).
d.
None of the above.
e.
There is not enough information to tell.


Definitions:

Weak Axiom

A principle or condition in economics that provides a minimal criterion for consumer choice consistency under certain assumptions.

Profit Maximization

A process or strategy in which a firm's primary objective is to achieve the highest possible profits by adjusting its production and pricing techniques.

Input Increases

A situation where there is an enhancement or augmentation in the resources used for production.

Marginal Product

The marginal product is the additional output resulting from a one-unit increase in the use of a variable input while holding other inputs constant.

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