Let . ​

question 68

Multiple Choice

Let . ​
Determine the following limit.(Hint: Use the graph to calculate the limit. )
​ ​ ​ ​

• A)6
• B)4
• C)2
• D)0
• E)does not exist

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Definitions:

Marginal Rate of Substitution

The exchange rate between goods that allows a consumer to trade off one product for another without altering their overall happiness.

Convex Preferences

A characteristic of consumer preference whereby a consumer prefers combinations or mixtures of goods over extreme amounts of single goods, displaying a preference for diversification.

Indifference Curve

A graph showing a combination of two goods that give a consumer equal satisfaction and utility, demonstrating the consumer's preference.

Optimal Consumption

The most efficient allocation of resources and consumption choices based on individual preferences, maximizing utility.