What is an indifference curve?
A) It is a curve that shows the total utility and the marginal utility derived from consuming a bundle of goods.
B) It is a curve that shows the combinations of consumption bundles that gives the consumer the same utility.
C) It is a curve that shows ranks a consumer's preference for various consumption bundles.
D) It is a curve that shows the tradeoff a consumer faces among different combinations of consumption bundles.

Question

Quizplus · Accepted Answer

An indifference curve shows the combinations of consumption bundles that give the consumer the same level of utility. Therefore, the best choice for a consumer is any point on the highest possible indifference curve, as it represents the highest level of utility attainable from the available options.

What Is an Indifference Curve