Ronald is an electrical engineer.He gets job offers from three companies,A,B,and C.Ronald prefers the offer from A over the offer from B and the offer from C over the offer from A.Hence it is evident that he prefers the offer from C over the offer from B.This scenario explains the ________ property of a utility function.
A) reducibility
B) closure
C) comparability
D) transitivity

Question

Quizplus · Accepted Answer

The scenario describes the transitivity property of a utility function, which states that if option A is preferred over option B, and option B is preferred over option C, then option A must be preferred over option C. This is seen in Ronald's preference for offer C over offer A (A>C) and offer A over offer B (A>B), leading to the conclusion that Ronald prefers offer C over offer B.

Ronald Is an Electrical Engineer