We have asked Mac to rank his preference between three market basket – A, B and C. If Mac prefers B to C, but does not care if he gets A or B, then

A is on a higher indifference curve than B
B is on a higher indifference curve than C, but it is not possible to determine whether C is on a higher, lower or same indifference curve than A
If Mac prefers B to C, but does not care if he gets A or B, then A. A is on a higher indifference curve than B B. B is on a higher indifference curve than C, but it is not possible to determine whether C is on a higher, lower or same indifference curve than A C. C is on a higher indifference curve
Both A and B are on a higher indifference curve than C

The correct answer is: B. B is on a higher indifference curve than C, but it is not possible to determine whether C is on a higher, lower or same indifference curve than A.

An indifference curve is a graph that shows all the combinations of goods that a consumer is indifferent between. In other words, all the points on an indifference curve represent bundles of goods that the consumer would be equally happy with.

If Mac prefers B to C, but does not care if he gets A or B, then we can say that B is on a higher indifference curve than C. This is because, if B were on a lower indifference curve than C, then Mac would prefer C to B. However, since Mac prefers B to C, we know that B must be on a higher indifference curve than C.

However, it is not possible to determine whether C is on a higher, lower or same indifference curve than A. This is because we do not know how Mac ranks A and C relative to each other. If Mac prefers A to C, then C would be on a lower indifference curve than A. If Mac prefers C to A, then C would be on a higher indifference curve than A. And if Mac is indifferent between A and C, then they would be on the same indifference curve.

In conclusion, B is on a higher indifference curve than C, but it is not possible to determine whether C is on a higher, lower or same indifference curve than A.