In a two-agent and two-good economy, a competitive market ...

[OSWALD]

In a two-agent and two-good economy, a competitive market equilibrium occurs when
 
  A) the agents' indifference curves are tangent to the price line.
  B) the agents' marginal rate of substitution are zero.
  C) the excess supply exceeds the excess demand.
  D) the agents' indifference curves intersect the price line.

Question 2

In the short run, average variable costs are minimized when
 
  A) MPL equals APL.
  B) APL is maximized.
  C) MPL is maximized and APL is increasing.
  D) Both A and B.

[b614102004]

Answer to Question 1

A

Answer to Question 2

D