If two bundles are on the same indifference curve,then
A) the consumer derives the same level of utility from each.
B) the consumer derives the same level of ordinal utility from each but not the same level of cardinal utility.
C) no comparison can be made between the two bundles since utility cannot really be measured.
D) B and C.

Question

Quizplus · Accepted Answer

If two bundles are on the same indifference curve, it implies that the consumer is indifferent between the two, and derives the same level of utility from each. Therefore, option A is the correct choice. Option B is incorrect because ordinal utility does not involve measurement; it only indicates preferences. And, option C is not correct as utility can be relatively measured through the method of marginal utility.

If Two Bundles Are on the Same Indifference Curve,then