give an example of a preferences ranking of baskets that do not satisfy the assumption that references are transitive?​

Sagot :

Cardinal utility theory measure utility in numbers and thus additivity of utility is not necessary for cardinal utility theory.

What does the assumption that preferences are complete mean about the consumer's ability to rank any two baskets? By requiring preferences to be complete, economists are ensuring that consumers will not respond indecisively when asked to compare two baskets.