An optimizing consumer will select the consumption bundle in which the marginal rate of substitution
a. is equal to the relative price ratio of the goods.
b. exceeds the marginal utility of each good by the greatest amount.
c. is less than the slope of the budget constraint.
d. All of the above are correct.
a
You might also like to view...
The Bitcoin:
a. Is an example of VCU1. b. Is an example of VCU2. c. Is an example of VCU3. d. Is an example of VCU4. e. None of the above because the Bitcoin is not a virtual currency.
Where does the United States stand as a participant in international trade?
(A) It is the largest exporter and importer. (B) It is the largest exporter but not the largest importer. (C) It is the largest importer but not the largest exporter. (D) It is the second largest importer and exporter.
The marginal cost curve used to model promoter sold tickets to an event is
A. L-shaped. B. u-shaped. C. backward L-shaped. D. check-shaped.
What can explain the fact that DVD players decreased in price during the 1990s even as more DVD players were being sold?
A) The demand for DVDs was declining. B) The supply of DVD players was decreasing. C) The supply of DVD players was increasing more than the demand for DVD players. D) The demand for DVD players was increasing more than the supply of DVD players.