In indifference curve analysis,the consumer's utility-maximizing point is where
A)each indifference curve has the same slope as the relevant budget line.
B)the indifference curve farthest from the origin intersects with the budget line that is farthest from the origin.
C)the consumer's marginal utility curve is tangent to the relevant budget line.
D)one indifference curve is tangent to the relevant budget line.
E)the price-consumption line is tangent to the budget line.

Question

Quizplus · Accepted Answer

The utility-maximizing point in indifference curve analysis is where an indifference curve is tangent to the budget line, indicating that the marginal rate of substitution equals the price ratio.

In Indifference Curve Analysis,the Consumer's Utility-Maximizing Point Is Where