An Optimum That Occurs as a Corner Solution

question 79

Multiple Choice

An optimum that occurs as a corner solution

• A) includes only one good.
• B) cannot be an equilibrium.
• C) cannot exhaust the budget constraint.
• D) includes the exact same amounts of each good.

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Definitions:

IASB

Stands for International Accounting Standards Board, responsible for developing International Financial Reporting Standards (IFRS).

Economic Benefits

The gains received or receivable by an entity as a result of past or future transactions or events.

Asset

A present economic resource controlled by the entity as a result of past events. An economic resource is a right that has the potential to produce economic benefits.

Control

The power to influence or direct the behavior of people or the course of events.