An optimal consumption bundle will always be on the highest attainable indifference curve for the consumer.

Question

Quizplus · Accepted Answer

An optimal consumption bundle is the one which maximizes the consumer's satisfaction or utility. This can be achieved by choosing a bundle that is on the highest attainable indifference curve, as it represents the combinations of goods that give the consumer the same level of utility. Any bundle below the highest attainable curve would represent a suboptimal choice, as it would mean sacrificing utility for no reason. Therefore, the statement is true.

An Optimal Consumption Bundle Will Always Be on the Highest