An Optimizing Consumer Will Select the Consumption Bundle in Which

question 106

Multiple Choice

An optimizing consumer will select the consumption bundle in which the marginal rate of substitution

• A)is equal to the relative price ratio of the goods.
• B)exceeds the marginal utility of each good by the greatest amount.
• C)is less than the slope of the budget constraint.
• D)All of the above are correct.

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Definitions:

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