A consumer who finds herself on the highest indifference curve possible is likely to have maximised her:
A) income
B) preferences
C) marginal rate of substitution
D) utility

Question

Quizplus · Accepted Answer

The highest indifference curve represents the combination of goods that give the consumer the highest level of satisfaction or utility. Therefore, the consumer has maximized her utility.

A Consumer Who Finds Herself on the Highest Indifference Curve