Asked by Emily Talbot on Jul 30, 2024
Verified
A rational consumer will try to achieve the highest indifference curve that his or her income will allow.
Rational Consumer
An individual who systematically pursues their self-interest by making decisions that maximize their utility and satisfaction.
Highest Indifference Curve
The indifference curve that represents the highest level of satisfaction or utility reachable for a consumer given their budget constraints.
- Understand how utility is maximized by selecting optimal combinations of goods within budget constraints.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
True
Explanation :
A rational consumer aims to maximize utility given their budget constraint, and achieving the highest possible indifference curve represents the highest level of satisfaction or utility they can attain with their income.
Learning Objectives
- Understand how utility is maximized by selecting optimal combinations of goods within budget constraints.