38.Which of the Following Statements Is True

question 11

Multiple Choice

38.Which of the following statements is true?

• A) Because total utility is constant along an indifference curve,the marginal rate of substitution is also constant.
• B) If an indifference curve is convex,the marginal rate of substitution varies along the curve.
• C) The slope of an indifference curve measures the consumer's marginal rate of substitution.
• D) Both b) and c) are true.

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Definitions:

Downward Sloping Demand

A characteristic of most demand curves, indicating that as the price of a good decreases, the quantity demanded increases.

Monopoly Power

The ability of a single supplier to control the market prices and output of a good or service, due to lack of competition.

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.

Monopoly Power

The ability of a monopoly to dictate the terms of the market, including price and quantity of goods or services provided.