Indifference theory is based on the assumption that
A) the consumer is able to quantify the difference in total utility received from two different consumption bundles.
B) the consumer receives the same utility and is therefore indifferent between any two consumption bundles.
C) the consumer has equated the marginal utilities of all products, and is therefore indifferent between consumption bundles.
D) consumers can always say which of two consumption bundles they prefer without having to say by how much they prefer it.
E) consumers are not able to rank consumption bundles in order of preference.

Question

Quizplus · Accepted Answer

Indifference theory assumes that consumers can rank their preferences for different bundles without quantifying the utility difference, meaning they can state which bundle they prefer or if they are indifferent between them.

Indifference Theory Is Based on the Assumption That