The Consumer's Optimal Consumption Bundle Is at the Point Where

question 78

Multiple Choice

The consumer's optimal consumption bundle is at the point where:

• A)the slope of the indifference curve equals the slope of the budget line.
• B)the indifference curve intersects the budget line.
• C)the ratio of the total utilities of the goods equals the ratio of the prices of the goods.
• D)the marginal utility of each good is maximized.

---

Definitions:

Depreciation Expense

The portion of the cost of a fixed asset deducted from revenue of the period, reflecting the use and wear and tear of the asset.

Cash Dividends

A rephrase: A form of profit-sharing where a corporation distributes a portion of its earnings to shareholders in the form of cash.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset over its life up to a specific date.