At a boundary optimum, a consumer's indifference curve must be tangent to her budget line.

Name: At a boundary optimum, a consumer's indifference curve must be tangent to her budget line.
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Quizplus · Accepted Answer

At a boundary optimum, the consumer's indifference curve is not tangent to the budget line; instead, the consumer is consuming a corner solution where the optimum is found at the boundary of the consumption set, not at a point where the marginal rate of substitution equals the price ratio.

At a Boundary Optimum, a Consumer's Indifference Curve Must Be