If preferences are transitive, indifference curves
A) intersect at the optimum consumption bundle.
B) do not intersect.
C) intersect where the marginal rate of substitution for each indifference curve is equal.
D) intersect at the equilibrium consumption bundle.
B
You might also like to view...
Compensation of employees is the largest component of GDP when using the expenditure approach to calculate GDP
Indicate whether the statement is true or false
Refer to the data provided in Table 17.2 below to answer the following question(s). The table shows the relationship between income and utility for Sue.Table 17.2 IncomeTotal Utility $00$20,00020$40,00040$60,00060$80,00080Refer to Table 17.2. Sue earns $40,000 annually. She has the opportunity to bet her entire salary on the upcoming super bowl. If Sue takes the bet, she will pick the Patriots. She believes that the Patriots have a 50-50 chance of winning the game. If the Patriots win, Sue will double her money ($80,000) but if they lose she loses her entire salary ($0). Sue's utility if she does not take the bet is ________ and her expected utility from the bet is ________.
A. 80; 20 B. 40; 40 C. 40; 0 D. 40; 80