What Does the Negative Slope of the Utilities Possibilities Frontier

question 111

Multiple Choice

What does the negative slope of the utilities possibilities frontier imply?

• A) Diminishing marginal utility
• B) The only way to increase one person's utility is to decrease another person's utility.
• C) Diminishing marginal rates of substitution
• D) The only way to increase output of one good is to decrease output of another.

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Definitions:

Bargaining Range

This term refers to the spread between the initial and final offer where negotiation is possible and both parties can find an acceptable agreement.

Resistance Points

The least favorable terms under which a party is willing to accept a negotiated agreement.

Public Pronouncement

An official statement or announcement made to the general public.

Opening Stance

Refers to the initial position or perspective one adopts before entering into a discussion, negotiation, or debate.