When Indifference Curves Are Bowed Inward Toward the Origin

question 34

Multiple Choice

When indifference curves are bowed inward toward the origin:

• A)people are less inclined to trade away goods that they have an abundance of
• B)people can only increase satisfaction by consuming more of all commodities
• C)it is unlikely that consumers will be willing to engage in trade
• D)the marginal rate of substitution decreases as a consumer moves down an indifference curve

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Definitions:

Horizontal Merger

A business consolidation that occurs between companies operating in the same industry or production stage.

Conglomerate Merger

A merger between companies that operate in completely different industries, creating a conglomerate of businesses under one corporate group with diversified interests.

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specified time period, indicating the company’s size relative to its competitors.

Horizontal

In economics and finance, relating to the analysis or movement across time or among peers in a linear or even manner.