Indifference curve analysis is similar to marginal utility analysis in that both theories
A) assume that utility can be measured.
B) assume that consumers try to achieve the highest possible level of satisfaction.
C) explain irrational behavior such as gambling.
D) can be verified under laboratory conditions.

Question

Quizplus · Accepted Answer

Both indifference curve analysis and marginal utility analysis assume that consumers behave rationally, aiming to maximize their satisfaction or utility given their budget constraints.

Indifference Curve Analysis Is Similar to Marginal Utility Analysis in That