Suppose That the Slope of a Line Tangent to the Total

question 30

Multiple Choice

Suppose that the slope of a line tangent to the total cost curve at point X is equal to the slope of a line tangent to the total benefit curve at point X,then

• A) Net benefit would be increased be reducing the amount of the activity
• B) Net benefit would be decreased be reducing the amount of the activity
• C) Net benefit would be increased be increasing the amount of the activity
• D) Net benefit would be maximized

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Definitions:

Roth Retirement Plan

A retirement plan allowing individuals to contribute after-tax dollars, with tax-free withdrawals in retirement.

Hedge Labor Income

Strategies or financial instruments used to protect an individual's future income from employment against uncertainty or potential losses.

Risk Averse

A descriptive term for investors or individuals who prefer lower risk or uncertainties, often choosing investments with smaller potential returns to avoid losing money.

Retirement Savings Plan

A retirement savings plan is a financial arrangement designed to replace employment income upon retirement, which can include various types of accounts like 401(k)s and IRAs.