Nancy Lerner is taking a course from Professor Goodheart who will count only her best midterm grade and from Professor Stern who will count only her worst midterm grade.In one of her classes, Nancy has scores of 20 on her first midterm and 70 on her second midterm.When the first midterm score is measured on the horizontal axis and her second midterm score on the vertical, her indifference curve has a slope of zero at the point (20, 70).Therefore this class could
A)be Professor Goodheart's but could not be Professor Stern's.
B)not be either Professor Goodheart's or Professor Stern's.
C)be either Professor Goodheart's or Professor Stern's.
D)be Professor Stern's but could not be Professor Goodheart's.
E)None of the above.

Question

Quizplus · Accepted Answer

Since the indifference curve has a slope of zero at the point (20, 70), it indicates that Nancy's utility does not change with an increase in her second midterm score from 70, given her first score is 20. This scenario fits Professor Goodheart's grading policy, where only the best score counts (the 70), and further improvements on the higher score do not affect her grade. It does not fit Professor Stern's policy, where the worst score determines the grade, and improvements on the higher score would not change her lowest score (20).

Nancy Lerner Is Taking a Course from Professor Goodheart Who