Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Mr. Lingle's budget constraint is AC. Point C is
A. not in Mr. Lingle's opportunity set but is on his budget constraint.
B. an available option and Mr. Lingle does not spend all of his income.
C. an available option and Mr. Lingle exactly spends all of his income.
D. not available because it represents a combination of gardenburgers and beer that Mr. Lingle cannot purchase with his current income.
Answer: C
You might also like to view...
Under monopolistic competition ________
A) many goods and services are not standardized B) prices adjust slowly to equilibrium C) even if there is substantial competition in the market, some firms can set prices D) all of the above E) none of the above
When a nation's political environment is more favorable, it will:
a. attract more physical investment. b. encourage individuals to invest more heavily in human capital. c. encourage the development and efficient use of natural resources. d. do all of these.