The composite good convention:
A)allows three-dimensional analysis.
B)treats many goods as a group.
C)cannot be employed in a two-dimensional graph.
D)incorporates goods that have dual uses in the consumer theory.

Question

Quizplus · Accepted Answer

The composite good convention treats many goods as a single group, making it easier to analyze their relationship to other goods in the consumer theory. It can be employed in a two-dimensional graph, as it simply represents the aggregate of multiple goods rather than individual goods themselves. It does not necessarily incorporate goods that have dual uses, as the composite good may represent a specialized combination of several goods that are not interchangeable with other goods in their respective categories.

The Composite Good Convention