When your budget line is just tangent to your indifference curve, you are at your best affordable point

An entrepreneur knits sweaters for sale. The entrepreneur has fixed costs of $100. When he makes 10 sweaters in one month, he must spend $15 on wool. To make eleven sweaters in one month, he must spend $17 on wool. If he has no other costs, what is the marginal cost of the eleventh sweater?

a) $1 b) $2 c) $17 d) $117

An item has utility for a consumer if it

A) generates enjoyment or satisfaction. B) is scarce. C) is something everyone else wants. D) has a high price.