The Equilibrium Condition for the Consumer Is That

question 31

Multiple Choice

The equilibrium condition for the consumer is that:

• A)along a budget line, the indifference curve be tangent to the budget line.
• B)expenditure on each good be equal.
• C)the marginal utility of each good be equal to its price.
• D)marginal utilities be equal for all goods.
• E)none of the above.

---

Definitions:

Marginal Product

The additional output resulting from using one more unit of a production input, keeping all other inputs constant.

Marginal Revenue

The supplementary income generated from the sale of an extra unit of a good or service.

High Skilled Labor

High Skilled Labor refers to jobs that require advanced knowledge or abilities, often gained through extensive education or specific training, and typically command higher wages.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.