In indifference curve analysis,the consumer's utility- maximizing point is where
A)the indifference curve farthest from the origin intersects with the budget line that is farthest from the origin.
B)the consumer's marginal utility curve is tangent to the relevant budget line.
C)the price- consumption line is tangent to the budget line.
D)one indifference curve is tangent to the relevant budget line.
E)each indifference curve has the same slope as the relevant budget line.

Question

Quizplus · Accepted Answer

The utility-maximizing point is where an indifference curve is tangent to the budget line, indicating the highest level of satisfaction the consumer can achieve given their budget constraints.

In Indifference Curve Analysis,the Consumer's Utility- Maximizing Point Is Where