A Graph That Illustrates the Maximum Amount of One Good

question 112

Multiple Choice

A graph that illustrates the maximum amount of one good that can be produced for every possible level of production of the other good is called a(n) :

• A)production possibilities curve.
• B)consumption possibilities curve.
• C)production function.
• D)supply curve.

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Definitions:

Marginal Utility Function

A mathematical representation that describes how the utility or satisfaction derived from consuming an additional unit of a good changes as more of the good is consumed.

Utility Function

A utility function is a mathematical representation of a consumer's preference ranking for different bundles of goods, showing the level of satisfaction for each.

Wealth

A substantial amount of monetary assets or physical valuables that are capable of being changed into a format usable for trading purposes.

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods according to their level of satisfaction or utility.