All combinations of the factors on the budget constraint are

Question

Quizplus · Accepted Answer

All combinations of the factors on the budget constraint are attainable for the given budget. This is because the budget constraint represents the boundary of the feasible set of choices, and all points within or on the boundary are attainable with the given budget. The other options, B and C, are not necessarily correct for all situations. The factors kept in reserve may not necessarily be in equal demand or equally desirable, and the desirability of different combinations may vary depending on individual preferences and circumstances.

All Combinations of the Factors on the Budget Constraint Are