If Two Goods Are Perfect Complements

question 49

Multiple Choice

If two goods are perfect complements,

• A)there is a bliss point and the indifference curves surround this point.
• B)consumers will only buy the cheaper of the two goods.
• C)indifference curves have a positive slope.
• D)None of the above.

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Definitions:

Period Cost

Costs that are not directly tied to the production process and are expensed in the accounting period in which they are incurred.

Insurance Expired

The portion of an insurance premium that has been used up during the policy term, representing a cost for the period.

Administrative Facilities

Facilities utilized for administrative purposes, including offices, meeting rooms, and support areas that help in the management and operation of an organization.

Indirect Costs

Costs not directly tied to a specific product, project, or activity, such as utilities, rent, and administrative expenses that support the overall operation.