Author Question: The fact that most consumers are unable to describe their preferences in terms of a utility function ... (Read 119 times)

humphriesbr@me.com · **on:** Jul 1, 2018

The fact that most consumers are unable to describe their preferences in terms of a utility function implies that not all consumer preferences can be represented with utility functions.

Indicate whether the statement is true or false

Question 2

A monopoly that is maximizing profits operates in the ________ portion of the demand curve.

A) unitary elastic
B) elastic
C) inelastic
D) horizontal

kilada · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

False. Utility functions are used to represent the order of rankings an individual has, but this does not imply that consumers are aware of such a function when making their choices.

Answer to Question 2

B