At the Point of Tangency Between an Isoquant and an Isocost

question 21

Multiple Choice

At the point of tangency between an isoquant and an isocost line,

• A) the firm is minimizing the cost of producing a given amount of output
• B) the firm is maximizing the cost of producing a given amount of output
• C) the household is maximizing its total utility given its income
• D) the society is maximizing the social value of output, given its resources and technology
• E) none of the above

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Definitions:

Basal Metabolic Rate

The amount of energy expended while at rest in a neutrally temperate environment, necessary to maintain vital functions of the body.

Total Metabolic Rate

The total amount of energy expended by an organism to maintain all bodily functions while at rest.

Body Mass Index

A measure of body fat based on height and weight that applies to adult men and women, used to categorize underweight, normal weight, overweight, and obesity.

Body Mass Index

A measure of body fat based on height and weight that applies to adult men and women to assess if they are underweight, normal weight, overweight, or obese.