Author Question: A budget line shows the A) consumption possibilities of a consumer at a given level of income and ... (Read 152 times)

c0205847 · **on:** Jun 29, 2018

A budget line shows the

A) consumption possibilities of a consumer at a given level of income and prices.
B) complete set of preferences for a household at various incomes.
C) consumption possibilities for several sets of relative prices at a level of income.
D) rate at which consumers wish to substitute one good for another.

Question 2

Because the demand for a perfectly competitive firm's product is perfectly elastic, marginal revenue is equal to

A) one.
B) zero.
C) the price of the product.
D) negative one.