Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter EMD, Problem 5MCQ
To determine
To state: The point where the optimum consumption bundle is found.
Expert Solution & Answer
Answer to Problem 5MCQ
The correct option is B i.e the slope of the indifference curve equals the slope of the budget line.
Explanation of Solution
The optimal consumption bundle is known as the utility maximization and the optimal consumption bundle is found at a point where the MU, i.e.,
That is,
Economics Concept Introduction
Introduction:
The optimal consumption bundle rule states that when a consumer maximizes utility, the marginal utility per dollar consumed should be alike for all services and goods in the consumption bundle.
Chapter EMD Solutions
Krugman's Economics For The Ap® Course
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