The assumption that more is better requires the consumer
A) to rank any two baskets.
B) to say that basket C is preferred to basket
A if basket B is preferred to basket A and basket C is preferred to basket B .
C) to rank a basket with more units of all goods higher than a basket with fewer units of all goods.
D) to have a diminishing marginal rate of substitution.

Question

Quizplus · Accepted Answer

The assumption that more is better implies that the consumer values quantity over other factors, such as variety or quality. Therefore, the consumer would rank a basket with more units of all goods higher than a basket with fewer units of all goods, which is choice C.

The Assumption That More Is Better Requires the Consumer