When the Marginal Rates of Substitution Differ,then

question 69

Multiple Choice

When the marginal rates of substitution differ,then:

• A)mutually beneficial trade is not possible.
• B)the only way to make one consumer better off is to make the other worse off.
• C)it is impossible to find a point that makes both worse off.
• D)indifference curves intersect inside the Edgeworth box.

---

Definitions:

Average Cost

Generally refers to the average total cost, representing the per unit total cost of production, including both fixed and variable costs.

Average Total Cost Curve

A graphical representation showing how the average cost of production changes as the quantity of output is altered.

Total Cost

The total amount of money spent on creating goods or services, encompassing both constant and fluctuating expenses.

Producing

Producing involves the creation, manufacturing, or assembly of goods and services for sale or distribution.