Which of the following statements about community indifference curves is true?
A)They are entirely unrelated to individuals' community indifference curves
B)they cross,they cannot be used in the analysis
C)the problems arising from intersecting community indifference curves can be overcome by the application of the compensation principle
D)all of the above.

Question

Quizplus · Accepted Answer

The problem arising from intersecting community indifference curves can be overcome by the application of the compensation principle, which involves determining the minimum level of compensation required to make every member of the community at least as well off as before. Therefore, option A is incorrect as community indifference curves are related to individuals' community indifference curves, and option B is incorrect as they do cross, but this can be addressed through compensation. Option D is incorrect as not all options are true.

Which of the Following Statements About Community Indifference Curves Is