Which of the Following Statements Is Necessarily True Regarding a Point

question 318

Multiple Choice

Which of the following statements is necessarily true regarding a point along a budget line?​

• A)​It implies an individual has spent her entire income.
• B)​It implies an individual is as happy as possible given her income.
• C)​It implies an individual no longer faces tradeoffs between both goods.
• D)​It implies an individual would be better off consuming a different bundle of goods.

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Definitions:

Net Income

The total profit of a company after subtracting all expenses from total revenues, reflecting the company's financial performance over a given period.

Contribution Margin

The amount by which a product's sales price exceeds its total variable costs, used to cover fixed costs and generate profit.

Variable Costing

Variable costing is an accounting method that includes only variable production costs in the cost of goods sold and inventory valuation.

Net Income

This is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.