If Hector's Marginal Rate of Substitution Between Pens and Pencils

question 383

Multiple Choice

If Hector's marginal rate of substitution between pens and pencils is constant, regardless of how many pens and pencils he has, then his indifference curves

• A)are right angles.
• B)are straight lines.
• C)slope upward.
• D)cross one another at certain points.

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Definitions:

Liability Balances

The outstanding obligations or debts that a company owes to third parties.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; also known as shareholders' equity.

Cash Dividend

The allocation of a part of a company's profits to its shareholders, approved by the board of directors, and typically dispensed in the form of cash.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, representing a reinvestment of a company’s earnings.