Question 9 Consumer equilibrium on an indifference map is at: Any point on the budget line. Any point inside the budget line. Any intersection of the budget line and an indifference curve. That point where the budget line is tangent to an indifference curve. Any point on the highest indifference curve shown on the indifference map.
Marginal Rate of Technical Substitution
MRTS reaches a manufacturer when a part of the product is lowered to sustain the manufacturing level when the other part is extended. It is the level of the quantity that is lowered when one extra volume is used, and the output is unchanged.
Preferences and Utility Analysis
Before understanding what is preference and utility analysis, it is very important to understand the terms preference and utility separately.
Question 9
Consumer equilibrium on an indifference map is at:
Any point on the budget line.
Any point inside the budget line.
Any intersection of the budget line and an indifference curve.
That point where the budget line is tangent to an indifference curve.
Any point on the highest indifference curve shown on the indifference map.
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