The Slope of the Budget Constraint,when a Consumer Has Reached

question 2

Multiple Choice

The slope of the budget constraint,when a consumer has reached optimal consumption of two goods,is equal to the

• A)Marginal rate of substitution.
• B)Cross-price elasticity of the two goods.
• C)Total utility for the two goods.

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Definitions:

Profit/(Loss) Realized

The actual gain or loss generated from completing a transaction.

Intercompany Sale

The sale of goods or services between divisions or subsidiaries within the same parent company.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the usage, wear and tear, or obsolescence of the asset.

Effective Tax Rate

The average percentage that companies or individuals pay in taxes on their total income.