The Tangency Condition for the Optimal Choice for a Consumer

question 4

Multiple Choice

The tangency condition for the optimal choice for a consumer is given by

• A) MRS_x,y = P_y/P_x
• B) MU_x/MU_y = 1
• C) MRS_x,y = P_x/P_y
• D) MU_x/MU_y = P_y/P_x

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Definitions:

Interpersonal Attractiveness

The appeal or attraction one person feels towards another, which can be influenced by physical, psychological, or social factors.

Referent Power

A form of personal power that stems from being admired, respected, or identified with, allowing for influence over others due to this admiration or identification.

Position Power

Position power refers to the authority and influence a person has within an organization based on their role or position.

Monetary Rewards

Monetary rewards are financial incentives given to employees as recognition for their work or achievements, aimed at motivating performance and loyalty.