Which of the Following Equations Corresponds to an Optimal Choice

question 495

Multiple Choice

Which of the following equations corresponds to an optimal choice point? (i)
MRS = P_X/P_Y
(ii)
MU_X/MU_Y = P_X/P_Y
(iii)
MU_X/P_X = MU_Y/P_Y
(iv)
MU_X/P_Y = MU_Y/P_X

• A)(i) only
• B)(i), (ii), and (iii) only
• C)(ii) and (iv) only
• D)(i), (ii), (iii), and (iv)

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Definitions:

Endorse

To give one's public approval or support to someone or something, or to sign a document thus validating it.

Bill of Exchange

A written, unconditional order by one party directing another party to pay a specified sum of money to a third party on demand or at a set date.

Call for Tenders

A formal invitation to suppliers to bid on supplying goods or services under specified conditions.

Prospective Bidders

Prospective bidders are individuals or entities that may be interested in submitting a bid or offer to acquire goods, services, or assets that are being offered.