The assumption that the farther from the origin an indifference curve is,the higher the level of utility it indicates implies that more is better.

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This assumption is based on the principle of diminishing marginal utility, which states that as a consumer consumes more of a certain good, the additional satisfaction or utility derived from each additional unit consumed decreases. Therefore, a higher level of utility is indicated by a higher indifference curve, which represents a higher quantity of the good being consumed. This implies that more is better, at least up to a certain point before the principle of diminishing marginal utility kicks in.

The Assumption That the Farther from the Origin an Indifference