Any Point Below a Given Indifference Curve Is

question 273

Multiple Choice

Any point below a given indifference curve is

• A) inferior to any point on the indifference curve.
• B) preferred to any point on the indifference curve.
• C) definitely affordable.
• D) definitely unaffordable.
• E) More information is needed to determine if the point is or is not affordable and if the point is or is not preferred.

---

Definitions:

Economic Profit Maximising

The process of adjusting the production and sale of goods and services to achieve the highest possible economic profit.

Marginal Revenue Function

A mathematical representation of the change in total revenue resulting from the sale of one additional unit of a product or service.

Marginal Cost Function

A mathematical representation that shows the change in total cost associated with producing one additional unit of output.

Total Revenue

The entire amount of money generated from sales of goods or services before any expenses are deducted.