alleryStart learning →Indifference curve analysis rests on which type of utility?
ACardinal utility
BTotal utility only
COrdinal utility
DMarginal money utility
Answer & Solution
Correct answer: C. Ordinal utility
The theory assumes consumers can rank bundles in order of preference without measuring utility numerically, which is ordinal utility.
Keep practising Theory of Consumer Behaviour
Browse all Theory of Consumer Behaviour questions for CA Foundation, or explore more Business Economics topics.
Related questions
Which assumption makes curves smooth and convex to the origin?The law of demand holds even when the consumer is compensated for a price rise. This is thConsumer theory derives demand curves using budget lines and what?The indifference curve idea in biology models what?Reluctance to spend on luxuries beyond a set limit reflects what?An impulsive purchase is an example of what, per behavioural critics?Behavioural economists say consumers often use shortcuts called what?Traditionally, rational behaviour of a consumer means what?