Consumption bundles that yield equal levels of total utility are shown on _.
A)a budget line
B)a marginal utility curve
C)an indifference curve
D)a utility maximizing curve

Question

Quizplus · Accepted Answer

Indifference curves show all the possible consumption bundles which yield equal levels of total utility. Therefore, the correct option is C. A budget line shows all the possible combinations of two goods that can be purchased given a consumer's income and the prices of the goods. A marginal utility curve shows the additional utility gained from consuming an additional unit of a good. A utility maximizing curve is not a commonly used term in microeconomics.

Consumption Bundles That Yield Equal Levels of Total Utility Are