When the more-is-better principle holds,we assign higher utility values to indifference curves
A) That are closer to the origin
B) That are farther from the origin
C) That are concave
D) That are L-shaped

Question

Quizplus · Accepted Answer

The more-is-better principle states that individuals prefer more of a good to less. Therefore, indifference curves that are farther from the origin indicate higher levels of the good being consumed and thus will have higher utility values.

When the More-Is-Better Principle Holds,we Assign Higher Utility Values to Indifference