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The assumption that the indifference curve approach is ordinal: (1) allows individuals to compare their exact marginal utilities associated with the consumption of a commodity.
The assumption that the indifference curve approach is ordinal: (1)
allows individuals to compare their exact marginal utilities associated with the consumption of a commodity.
means that one can establish how much more satisfaction is derived from a cup of tea than from a cup of hot chocolate.
means that the satisfaction from consuming different products can be ranked or ordered.
allows for two indifference curves to intersect at a common point.
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