Using Indifference Curve Analysis, an Optimum Is Characterized by

question 137

Multiple Choice

Using indifference curve analysis, an optimum is characterized by

• A) the marginal rate of substitution of one good divided by its price equal to the marginal rate of substitution of the other good divided by its price.
• B) the marginal rate of substitution being equal to one.
• C) the marginal rate of substitution being equal to zero.
• D) the marginal rate of substitution being equal to the ratio of the prices of the two goods.

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