The tangency of an indifference curve and a budget line:
A) gives the profit maximizing combination of two goods
B) gives the cost minimizing combination of two goods
C) can be determined without regard to the prices of the two goods
D) is found where the slope of the indifference curve (MRS) is equal to the price ratio
Correct Answer:
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Q3: An indifference curve that is convex to
Q4: To determine the combination of pizza and
Q5: Two indifference curves for a given consumer:
A)
Q6: The traditional convex indifference curve that is
Q7: If an indifference curve intersects a budget
Q9: If you are eating pizza at a
Q10: The Law of Diminishing Marginal Utility explains:
A)
Q11: A rational individual would never:
A) drive a
Q12: When an economist says that an apple
Q13: An economist should never:
A) make value judgements
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