In Utility Analysis, a Consumer's Tastes and Preferences Are Assumed

question 160

Multiple Choice

In utility analysis, a consumer's tastes and preferences are assumed to be

• A) dependent on income and education.
• B) predetermined and constant.
• C) dependent on national origin.
• D) non-existent

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Definitions:

Demand Function

A mathematical representation that describes the relationship between the quantity of a good demanded and its price, along with other determinants.

Cournot Equilibrium

A condition in a duopoly market where each firm chooses the quantity to produce to maximize its own profit, assuming the other's output is fixed.

Marginal Cost

An additional cost incurred by producing one more unit of a product or service, a key concept in economics for decision-making.

Inverse Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded when price is the independent variable.