Is the Following Statement True or False? Briefly Explain Your

question 45

Essay

Is the following statement true or false? Briefly explain your answer."A utility maximizer will always choose a bundle at which his indifference curve is tangent to his budget line."

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Definitions:

Producer Surplus

The disparity between what sellers are prepared to accept for a product or service and the amount they actually get.

Antitrust Laws

Legislation enacted by the government to prevent monopolies and to foster competition in the marketplace.

Illegal

Activities or actions that are forbidden by law or statute, punishable by fines, imprisonment, or other sanctions.

Price Discount

A reduction from the original or listed price of a product or service, typically offered to stimulate sales or clear inventory.