At a corner solution, which of the following is know to be true?
a. The slope of the indifference curve equals the slope of the budget line.
b. The slope of the indifference curve is greater than the slope of the budget line.
c. The slope of the indifference curve is less than the slope of the budget line.
d. The slope of the indifference curve does not equal the slope of the budget line.
d. The slope of the indifference curve does not equal the slope of the budget line.
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A cost that arises from the production of a good that is paid by someone who did not participate in the production is called
A) a free rider. B) an externality. C) rent seeking. D) a public failure.
A tendency for a good to come into favor with consumers because other consumers have chosen to buy the item is
A) price-leadership. B) negative-sum game. C) positive market feedback. D) negative market feedback.