A consumer chooses an optimal consumption point where the
a. marginal rate of substitution equals the relative price ratio.
b. slope of the indifference curve exceeds the slope of the budget constraint.
c. ratios of all the marginal utilities are equal.
d. All of the above are correct.
a
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Which of the following industries is most likely closest to achieving perfect price discrimination?
A) the airline industry B) the wheat industry C) the textbook industry D) the toilet paper industry E) the soft drink industry
Suppose that in Belgium, the opportunity cost of producing a trombone is 8 clarinets. In Denmark, the opportunity cost of producing a trombone is 6 clarinets
a. What is the opportunity cost of producing a clarinet for Belgium? b. What is the opportunity cost of producing a clarinet for Denmark? c. Which country has a comparative advantage in the production of clarinets? d. Which country has a comparative advantage in the production of trombones?