The Absolute Value of the Slope of an Indifference Curve

question 63

True/False

The absolute value of the slope of an indifference curve equals the ratio of the marginal utilities of the two goods involved.

---

Definitions:

Total Revenue

The overall amount of money received by a firm from selling its goods or services, calculated by multiplying the price by the quantity sold.

Output

The total quantity of goods or services produced by an individual, firm, or country over a specified period.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price takers.

Price Takers

Entities in a market that accept the prevailing prices because they do not have enough market power to influence prices themselves.