This topic contains a solution. Click here to go to the answer

Author Question: In a budget line/indifference curve figure, how do you identify the best affordable combination of ... (Read 88 times)

kellyjaisingh

  • Hero Member
  • *****
  • Posts: 540
In a budget line/indifference curve figure, how do you identify the best affordable combination of any two goods?
 
  What will be an ideal response?

Question 2

The above figure shows the marginal benefits and marginal costs of a college education. The efficient number of students is
 
  A) 0.
  B) 10 million.
  C) 15 million.
  D) 25 million.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mrphibs

  • Sr. Member
  • ****
  • Posts: 307
Answer to Question 1

Any combination of goods along the budget line is affordable. The best of these combinations is on the highest indifference curve. This best combination is where the indifference curve is tangent to the budget line, so this combination is the best affordable combination.

Answer to Question 2

C




kellyjaisingh

  • Member
  • Posts: 540
Reply 2 on: Jun 29, 2018
Wow, this really help


LVPMS

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

For a complete list of videos, visit our video library