Concept explainers
Concept Introduction:
Indifference Curve:
It is a line that shows all the consumption bundles that provides the same amount of the total utility for an individual.
The different properties of indifference curves are:
- Two indifference curve lines never intersect each other.
- The farther the indifference curve is from the origin, the more utility it has.
- Indifference curve slopes downwards because more is better.
- Indifference curve has a convex shape because of the diminishing marginal utility which states that the marginal
utility of an additional unit decreases.
Concept Introduction:
Indifference Curve:
It is a line that shows all the consumption bundles that provides the same amount of the total utility for an individual.
The different properties of indifference curves are:
- Two indifference curve lines never intersect each other.
- The farther the indifference curve is from the origin, the more utility it has.
- Indifference curve slopes downwards because more is better.
- Indifference curve has a convex shape because of the diminishing marginal utility which states that the marginal utility of an additional unit decreases.
Concept Introduction:
Indifference Curve:
It is a line that shows all the consumption bundles that provides the same amount of the total utility for an individual.
The different properties of indifference curves are:
- Two indifference curve lines never intersect each other.
- The farther the indifference curve is from the origin, the more utility it has.
- Indifference curve slopes downwards because more is better.
- Indifference curve has a convex shape because of the diminishing marginal utility which states that the marginal utility of an additional unit decreases.
Concept Introduction:
Indifference Curve:
It is a line that shows all the consumption bundles that provides the same amount of the total utility for an individual.
The different properties of indifference curves are:
- Two indifference curve lines never intersect each other.
- The farther the indifference curve is from the origin, the more utility it has.
- Indifference curve slopes downwards because more is better.
- Indifference curve has a convex shape because of the diminishing marginal utility which states that the marginal utility of an additional unit decreases.
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