Multiple Choice
Which of the following statements is true?
A) Corner solutions always satisfy the tangency condition.
B) Interior solutions may or may not satisfy the tangency condition.
C) Interior solutions always satisfy the tangency condition.
D) Whenever the consumer purchases good X but not good Y, then MRSXY ≤ PX/PY at the chosen bundle.
Correct Answer:
Verified
Correct Answer:
Verified
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