At the Optimal Consumption Bundle, the Marginal Rate of Substitution

question 26

Multiple Choice

At the optimal consumption bundle, the marginal rate of substitution of leisure for consumption is equal to

• A)the real wage and the budget line is tangent to an indifference curve.
• B)minus the real wage and the budget line intersects the indifference curve.
• C)the real wage and the budget line intersects the indifference curve.
• D)minus the real wage and the budget line is tangent to the indifference curve.
• E)the real wage and on the highest possible indifference curve.

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