The correct answer is: A. a-2, b-1, c-3
Marginal utility is the additional satisfaction or benefit that a consumer gains from consuming one more unit of a good or service. It is often represented by the letter $MU$.
Indifference curve analysis is a tool used in economics to analyze consumer preferences. It shows the combinations of goods and services that a consumer is indifferent between. Indifference curves are usually downward-sloping, which means that consumers prefer more goods and services to less.
The revealed preference hypothesis is a theory in economics that states that consumers’ choices reveal their preferences. This means that if a consumer chooses to buy good A over good B, then they must prefer good A to good B.
Hick and Allen were two economists who developed the concept of marginal utility. Alfred Marshall was an economist who developed the indifference curve analysis. Paul A. Samuelson was an economist who developed the revealed preference hypothesis.
Here is a more detailed explanation of each concept:
- Marginal utility is the additional satisfaction or benefit that a consumer gains from consuming one more unit of a good or service. It is often represented by the letter $MU$. Marginal utility is always diminishing, which means that the additional satisfaction or benefit that a consumer gains from consuming one more unit of a good or service decreases as the consumer consumes more of that good or service.
- Indifference curve analysis is a tool used in economics to analyze consumer preferences. It shows the combinations of goods and services that a consumer is indifferent between. Indifference curves are usually downward-sloping, which means that consumers prefer more goods and services to less. The slope of an indifference curve indicates the marginal rate of substitution, which is the rate at which a consumer is willing to trade one good or service for another.
- The revealed preference hypothesis is a theory in economics that states that consumers’ choices reveal their preferences. This means that if a consumer chooses to buy good A over good B, then they must prefer good A to good B. The revealed preference hypothesis can be used to test whether consumers are behaving rationally.
I hope this explanation is helpful!