According to the More-Is-Better Principle

question 47

Multiple Choice

According to the more-is-better principle,

• A) A consumer will always select the bundle that is ranked highest among all alternative bundles
• B) A consumer will prefer a bundle that has the largest amount of the good they prefer most
• C) Consumers always try to achieve the highest possible level of well-being
• D) When comparing two consumption bundles, a consumer prefers the bundle that has more of every good

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the activity level of a business, such as rent, salaries, and equipment leases.

Break Even

The point at which total costs and total revenues are equal, leading to no net loss or gain.

Financial Performance

A measure of a company's financial health and profitability, often evaluated through metrics like revenue, expenses, and earnings.

Liquidity

The degree to which an asset or security can quickly be turned into cash without significantly affecting its market price.