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- Indifference curves cannot cross because123:
- If they could cross, it would create ambiguity about the true utility.
- The farther out an indifference curve lies, the higher the level of utility it indicates.
- Two intersecting indifference curves would have to provide the same level of satisfaction at the point of intersection.
- This violates the assumption of transitivity and the concept of consumer preferences.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Indifference curves never cross. If they could cross, it would create large amounts of ambiguity as to what the true utility is. The farther out an indifference curve lies, the farther it is from the origin, and the higher the level of utility it indicates.corporatefinanceinstitute.com/resources/economic…Therefore, if two indifference curves were to cross, they would both have to provide the consumer with the same level of total satisfaction, because the exact point where they intersect (i.e., point A) is on both curves. Thus, all other combinations on both curves would have to provide the same level of satisfaction as well.quickonomics.com/four-properties-of-indifference-c…As two indifference curves cannot represent the same level of satisfaction, they cannot intersect each other. It means only one indifference curve will pass through a given point on an indifference map. In figure, satisfaction from point A and from B on IC1 will be the same. Similarly, points A and C on IC2 also give the same level satisfaction.www.toppr.com/ask/question/why-two-indifference … Why don't indifference curves intersect? - Socratic
Dec 28, 2015 · Learn the definition and graphical explanation of indifference curves, which show the combinations of goods that produce the same satisfaction for a consumer. See why higher utility curves cannot intersect lower ones, and …
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· An indifference curve is a line drawn between different consumption bundles, where the individual is indifferent among them. Indifference curves never cross, as this would create ambiguity about the true utility level. …Up to3.2%cash backIndifference Curves: Definition, Properties and Other …
Thus an indifference curve may be defined as a curve which shows combinations of goods which are equivalent to one another. It is a locus of points sharing alternative combinations of apple and orange which give the same satisfaction …
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Feb 2, 2024 · One cannot put a numerical value on the level of satisfaction gained from the consumption of goods. However, they can tell their preference between two goods, i.e., which good gives them more or less satisfaction. This …
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Feb 4, 2020 · Indifference curves do not cross. It is inconsistent to suggest than an indifference curve would cross another one – this is logically impossible. Given that all points on an indifference curve have identical utility, in the above …
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