Question

As a manager of a retail store you are responsible for creating a basket of goods and services for a particular set of customers. How would you us the concept and theory of indifference curve in deciding the set of commodities to be offered to different segments of the customers

Answer 1

An indifference curve is a locus of points showing a bundle of goods that give the same utility to a consumer.A collection of indifference curves forms an indifference map .In an ic map ,the higher you go the greater the level of satisfaction.