An Indifference Curve Is a Line Showing

question 184

Multiple Choice

An indifference curve is a line showing

• A)combinations of goods that can be produced if all resources are fully employed.
• B)all combinations of two commodities that are equally desirable to the consumer.
• C)all combinations of goods over which the consumer has no choice.
• D)how decisions are made in a nonmarket economy.

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Definitions:

Variable Cost

A cost that changes in proportion with the level of output or activity.

Fixed Costs

Business expenses that remain unchanged regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Breakeven Volume

The quantity of output or sales at which total revenues equal total costs, resulting in no profit or loss.

Sales Revenues

The total amount of money generated from sales of goods or services by a company before any expenses are subtracted.