Which of the Following Statements Is True

question 41

Multiple Choice

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:

Budgeting

The process of creating a plan to spend your money, which involves estimating revenues and outlining planned expenditures.

Merchandise Purchases Budget

A financial plan that estimates the amount of inventory a company needs to buy to meet sales needs for a future period.

Sales Budget

A detailed plan that outlines projected sales for a future period, taking into account factors like marketing strategies and market conditions.

Sole Task

A sole task is a single duty or responsibility assigned to a person or a system.