When Two Goods Are Perfect Substitutes,what Do We Know About

question 149

Multiple Choice

When two goods are perfect substitutes,what do we know about the marginal rate of substitution

• A)It is constant.
• B)It decreases as the scarcity of one good increases.
• C)It increases as the scarcity of one good increases.
• D)It increases as the abundance of one good increases.

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Definitions:

Operating Cycle

The period from the acquisition of inventory to the collection of cash from receivables, reflecting a company's efficiency in managing its working capital.

Readily Marketable

Assets or securities that can be easily sold or converted into cash, typically without significant loss of value.

Short-Term Investments

Assets that can be easily converted into cash within a short timeframe, typically one year or less, without losing value.

Marketable Debt Securities

Investments in bonds or other debt securities that are available for sale before their maturity date.