Refer to the Budget Line Shown in the Diagram

question 238

Multiple Choice

Refer to the budget line shown in the diagram. If the consumer's money income is $20, the

• A) prices of C and D cannot be determined.
• B) price of C is $2 and the price of D is $4.
• C) consumer can obtain a combination of 5 units of both C and D.
• D) price of C is $4 and the price of D is $2.

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Definitions:

Cost Advantages

Economic benefits that an organization gains due to lower production costs, often leading to competitive pricing.

GE/McKinsey Grid

A strategic tool used to evaluate business portfolios based on industry attractiveness and business unit strength.

BCG Matrix

A strategic planning tool that uses market growth rate and market share to categorize business units or products into four categories: Stars, Cash Cows, Question Marks, and Dogs.

Market Attractiveness

An assessment of the potential profitability and growth opportunities in a particular market sector.