A Corner Point Solution Is Always the Optimum for a Consumer

question 58

Multiple Choice

A corner point solution is always the optimum for a consumer when:

• A)a unique point of tangency exists between the consumer's indifference curve and the budget line.
• B)the consumer has straight line (constant slope)indifference curves.
• C)there is no point of tangency between the consumer's indifference curves and the budget line and the consumer does not have straight line indifference curves.
• D)the consumer is indifferent to both goods equally.

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Definitions:

Nitrification

A microbial process by which ammonia is oxidized to nitrites and then nitrates, a crucial part of the nitrogen cycle in soils.

Nitrate

A polyatomic ion with the chemical formula NO3- or a compound containing this ion, commonly utilized by plants in nitrogen assimilation.

Carbon Cycle

A process through which carbon is exchanged among the biosphere, pedosphere, geosphere, hydrosphere, and atmosphere of the Earth, crucial for maintaining life and environmental balance.

Respiration

The metabolic process by which organisms obtain energy by exchanging gases with their environment.