A utility function is a mathematical function that assigns values to consumption bundles to represent the
A) Consumer's income
B) Consumer's preferences
C) Marginal rate of substitution
D) Prices of the goods in the consumption bundle

Question

Quizplus · Accepted Answer

A utility function represents a consumer's preferences for different consumption bundles. It assigns a higher value to bundles that the consumer prefers over others. It is not related to the consumer's income (A), marginal rate of substitution (C), or prices of the goods in the bundle (D).

A Utility Function Is a Mathematical Function That Assigns Values