The point where the budget constraint and an indifference curve are tangent
A)Represents maximum total revenue.
B)Indicates the optimal level of production.
C)Represents the optimal consumption point.

Question

Quizplus · Accepted Answer

The point where the budget constraint and an indifference curve are tangent represents the optimal consumption point. This is because it is the point at which the consumer is maximizing utility given their budget constraint. Therefore, the correct choice is C.

The Point Where the Budget Constraint and an Indifference Curve