Question

Which of the following is not true regarding the outcome of a consumer’s optimization process? Group of answer choices a.the consumer is indifferent between any two points on his budget constraint b.the consumer’s indifference curve is tangent to his budget constraint c.the consumer has reached his highest indifference curve subject to his budget constraint d.the marginal rate of substitution between goods is equal to the ratio of the prices between goodse.The marginal utility per dollar spent on each good is the same

Answer 1

Option A

Step-by-step explanation:

The expenditure limit reflects the profits of a customer, so efficiency happens when customers may reach the lowest potential curve of disregard towards their income bracket. In other terms, there will be less use of another product, when more of that item is eaten.

Thus, if we carefully focus then we can realize that the whole point of doing customer optimization is to make sure that customer gets clear about their preferences.