________ Seeking Calculates the Values of the Inputs Necessary to Achieve

question 52

Short Answer

________ seeking calculates the values of the inputs necessary to achieve a desired level of an output.

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Definitions:

Marginal Rate

Generally refers to the additional or incremental rate applied to an additional unit of some activity, such as the rate of tax applied to the next dollar of income.

Budget Constraint

Represents the limitations on the choices consumers can make, given their income and the prices of goods and services.

Indifference Curve

A curve that shows consumption bundles that give the consumer the same level of satisfaction

Absolute Price

The price of a good or service without taking inflation or purchasing power into account.