101k views
16 votes
Bundle A is strictly preferred to bundle B, and bundle B is strictly preferred to bundle C. If the utility associated with B is 58, which of the following are possible utility levels for bundle A and bundle C?

A. (44, 50,63)
B. (63, 50, 44)
C. (68,50,69)
D. (32,50,49)

User Girish KG
by
7.7k points

1 Answer

2 votes

Answer: (63, 50, 44)

Step-by-step explanation:

Utility is the satisfaction that we derive as consumers when we consume or use a certain product.

Since Bundle A is strictly preferred to bundle B, and bundle B is strictly preferred to bundle C, it means that the value of Bundle A must be more than B and C while that of Bundle B must be more than bundle C.

Therefore, the correct option is B which is (63, 50, 44)

User Quinn Comendant
by
8.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories