If an Indifference Curve Has a Kink, Then

question 67

Multiple Choice

If an indifference curve has a kink, then:

• A)the indifference curve is not convex to the origin.
• B)the marginal rate of substitution is a meaningless concept.
• C)preferences are normal.
• D)the marginal rate of substitution is undefined at the kink.

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Definitions:

Minimum Requirements

The least or lowest acceptable standards or quantities needed to achieve a specific goal or function.

FCFS

First Come, First Served, a method of service or resource allocation where requests are processed in the order that they were received.

EDD

Stands for Earliest Due Date, a rule used in production and operations management to prioritize jobs, tasks, or items that have the earliest due dates first.

SPT

Shortest Processing Time, a rule used in job sequencing to decrease the total amount of time required to complete a set of jobs by processing the shortest job first.