The continuity assumption implies that:
A)the indifference curves are smooth.
B)the indifference curves are continuous.
C)the indifference curves never cross.
D)the indifference curves are convex.

Question

Quizplus · Accepted Answer

The continuity assumption in microeconomics implies that the indifference curves are continuous, meaning that they do not have any breaks or discontinuities. This assumption is important because it allows us to make precise economic predictions and to use calculus to analyze economic models. While A, C, and D may also be true of indifference curves, they are not direct implications of the continuity assumption.

The Continuity Assumption Implies That