What assumptions are necessary to prevent indifference curves from crossing?
A)Transitivity
B)Completeness
C)More is better
D)Transitivity and more is better

Question

Quizplus · Accepted Answer

Indifference curves do not cross due to the assumptions of transitivity and the principle that more is better. Transitivity ensures consistent preferences, preventing the possibility of crossing curves. The "more is better" assumption implies that a combination of goods with more of at least one good and no less of others is always preferred, which geometrically prevents the curves from intersecting.

What Assumptions Are Necessary to Prevent Indifference Curves from Crossing