If an Individual's Indifference Curve Map Does Not Obey the Assumption

question 10

Multiple Choice

If an individual's indifference curve map does not obey the assumption of a diminishing MRS,then

• A)the individual will not maximize utility.
• B)the individual will buy none of good X.
• C)tangencies of indifference curves to the budget constraint may not be points of utility maximization.
• D)the budget constraint cannot be tangent to an appropriate indifference curve.

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Definitions:

New Owner

The individual or entity that acquires ownership or property rights in something, such as real estate or a company, often through purchase or transfer.

Land

The part of the earth's surface that is not covered by water, including any buildings, crops, or natural resources upon it, which can be owned or used.

Easement in Gross

A legal right to use another person's land for a specific, limited purpose, which is not tied to any particular piece of property.

Personal

Relating to or concerning individuals rather than groups or companies; not related to business or official matters.