The assumption of completeness of preferences states that _____.
A)a consumer can rank all possible consumption bundles
B)consumers have consistent preferences
C)more of a good is always better
D)consumers are rational when making choices

Question

Quizplus · Accepted Answer

The assumption of completeness of preferences states that a consumer can rank all possible consumption bundles, which means that the consumer is capable of comparing and choosing between different combinations of goods and services that are available to them. This assumption forms the basis of microeconomic theory and helps to explain consumer behavior in a market economy. The other options are incorrect because they reflect other assumptions underlying microeconomic theory, such as rationality, consistency, and the idea that more is always better.

The Assumption of Completeness of Preferences States That _____