If Preferences Are Transitive, Indifference Curves

question 107

Multiple Choice

If preferences are transitive, indifference curves

• A)intersect at the equilibrium consumption bundle.
• B)intersect at the optimum consumption bundle.
• C)intersect where the marginal rate of substitution for each indifference curve is equal.
• D)do not intersect.

---

Definitions:

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from total revenue.

Selling Expenses

Costs incurred directly and indirectly in selling a product, including advertising, shipping, and sales staff salaries.

Merchandise

Goods that have been purchased for resale, typically in a retail environment.

Sales to Total Assets Ratio

A financial metric that measures how efficiently a company is using its assets to generate sales.