Buy custom economics - indifference curve
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Business
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| Number of pages / Number of words: |
8 / 2177 |
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It is inconceivable that anyone could actually assign specific numbers for the amount of utility received from consuming every possible combination of goods. Therefore, a utility function is a theoretical concept that proves useful in analysis.
Indifference curve
An Indifference curve shows all the consumption bundles of goods and services, each of which yields the same level of total utility...
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Utility is then a device to represent preference relations rather than something from which preferences are derived (Geanakoplis, 1987, p. 117). The main use of indifference curves is in the representation of prospectively observable demand patterns for individual consumers as to commodity bundles (Bohm and Haller, 1987, p...
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