Which of the following statements concerning indifference curves is correct?
A)An indifference curve is the locus of points describing proportional price levels of the two goods.
B)Indifference curves presuppose the measurement of total utility and marginal utility.
C)An indifference curve is the locus of points representing various combinations of two goods about which the consumer is indifferent.
D)Indifference curves presuppose the validity of the "law of diminishing returns."
E)None of the above.

Question

Quizplus · Accepted Answer

Indifference curves represent various combinations of two goods about which the consumer is indifferent. The other options are incorrect as A is describing isoquants, B is relating to the concept of utility, D is referring to production function and E is not a correct option as C is correct.

Which of the Following Statements Concerning Indifference Curves Is Correct