Author Question: The point where the indifference curve is tangent to the budget line A) is the best affordable ... (Read 166 times)

Redwolflake15 · **on:** Jun 29, 2018

The point where the indifference curve is tangent to the budget line

A) is the best affordable point.
B) is where the marginal rate of substitution exceeds the relative price by as much as possible.
C) is a point on consumer's demand curve.
D) All of the above answers are correct.

Question 2

For a perfectly competitive firm, in the long-run equilibrium

A) P = MC = ATC = MR.
B) MR = MC = AFC.
C) MR = P = ATC = AFC.
D) P = MC > ATC.