Which of the following is NOT a property that consumers’ preferences might have?

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BlackTom AI · Accepted Answer

Exploring the question about properties of consumer preferences, we assess each option in turn.
Option a: transitivity. This is a classic property of preferences stating that if a bundle A is preferred to B and B is preferred to C, then A is preferred to C. It ensures consistency in choices, so transitivity is indeed a property often assumed for preferences.
Option b: convexity. Convexity implies that mixtures or average bundles are at least as good as extremes, reflecting a preference for diversification. This is another standard assumption about many consumer preferences, especially for risk-averse or with diminishing marginal rates of substitution.
Option c: monotonicity. Monotonicity means more of a good is never worse (and usually is strictly preferred), which is a common simplifying assumption about preferences, aligning with the idea that more is better in most contexts.
Option d: constant returns to scale. This concept belongs to production theory, describing how output changes when all inputs are scaled. It is a property of the production function, not of consumer preferences. Therefore it is not a property that consumer preferences might have, making this the NOT-appropriate choice in the context of preferences.
In summary, the first three options (transitivity, convexity, monotonicity) are standard properties attributed to consumer preferences, while constant returns to scale is a production-side concept and does not describe preferences.

ECC2000 - ECC5900 - S2 2025 Sample final exam

Which of the following is NOT a property that consumers’ preferences might have?

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