Answered

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Why are the indifference curves for perfect complements right angles?

A. One good always provides more utility than the other.
B. An additional unit of one good but not the other has no marginal value to the consumer.
C. Perfect complements are consumed in varied proportions.
D. Neither good gives the consumer utility.

Sagot :

GinnyAnswer

Final answer:

Indifference curves for perfect complements are right angles due to the fixed proportions in which the goods are consumed, maintaining utility only at specific ratios.


Explanation:

Perfect complements are goods that are consumed together in fixed proportions, like cars and tires. The indifference curves for perfect complements are right angles because the consumer requires a specific ratio of the goods for utility, and any deviation from that ratio diminishes satisfaction.

For example, if you have one car, you need exactly four tires; having more than four tires won't increase utility without an additional car. This interdependency between goods leads to right angle indifference curves, showing the unique relationship between perfect complements.


Learn more about Indifference curves for perfect complements here:

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