Which of the following assumptions is(are)NOT made in consumer behavior theory?
A)Consumers can rank all bundles of goods.
B)Consumers can measure the utility they get from all bundles of goods.
C)Consumers have complete information.
D)both a and b
E)None of the above are assumptions made in consumer behavior theory.

Question

Quizplus · Accepted Answer

Consumer behavior theory assumes that consumers can rank bundles of goods (ordinal utility), but it does not assume that they can measure the utility (cardinal utility) they get from all bundles.

Which of the Following Assumptions Is(are)NOT Made in Consumer Behavior