At Any Point on an Indifference Curve,the Slope Indicates

question 86

Multiple Choice

At any point on an indifference curve,the slope indicates:

• A)the relative price ratio of the two goods.
• B)the allocation of the consumer's income between the two goods.
• C)the marginal rate of substitution between the two goods.
• D)how the total satisfaction of the consumer changes with different market baskets.

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Definitions:

Total Cost

The sum of fixed and variable costs incurred in the production of goods or services.

Isocost Line

A graphical representation in economics that shows all possible combinations of inputs that cost the same total amount.

Slope

A measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Prices of Capital

Prices of capital refer to the cost of acquiring, maintaining, and using productive assets such as buildings, machinery, and equipment for producing goods or services.