The marginal rate of substitution is
A) equal to unit changes in the quantities of both goods so that utility rises.
B) the slope of the budget line at all points.
C) the change in the quantity of one good that just offsets a unit change in another good, keeping utility constant.
D) found by adding additional units.
Answer: C
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The U.S. oil industry has only a few firms in it, so an economists is likely to describe the industry as
A) a monopoly. B) an oligopoly. C) perfectly competitive. D) monopolistically competitive. E) Both answers C and D can be correct.
Points below a firm's total product curve are
A) both attainable and technologically efficient. B) neither attainable nor technologically efficient. C) attainable but not technologically efficient. D) technologically efficient but not attainable.