The Tangency Condition for the Optimal Choice for a Consumer $\mathrm { MRS } _ { x , y } = P _ { y } / P _ { x }$

question 35

Multiple Choice

The tangency condition for the optimal choice for a consumer is given by:

• A) \(\mathrm { MRS } _ { x , y } = P _ { y } / P _ { x }\)
• B) \(\mathrm { MU } _ { x } / \mathrm { MU } _ { y } = 1\)
• C) \(\mathrm { MRS } _ { x , y } = P _ { x } / P _ { y }\)
• D) \(\mathrm { MU } _ { x } / \mathrm { MU } _ { y } = P _ { y } / P _ { x }\)

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Definitions:

Control Activity

Measures implemented to ensure that management's directives are carried out, aiming to prevent, detect, and correct financial misstatements or fraud.

Extensive Marketing Plan

A comprehensive strategy outlining marketing efforts, targeting how a business will effectively engage customers, compete in the market, and achieve its marketing goals.

Segregation Of Duties

An internal control method used to prevent fraud and errors, which involves dividing tasks and responsibilities among different people to ensure no single individual controls all aspects of a transaction.

Internal Controls

Mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.