Card 7 / 15: In the presence of declining marginal rates of substitution, consumers who again and again sacrifice a unit of one good cannot remain on their original consumption-indifference curves (that is, they cannot maintain their original levels of welfare) unless they receive as compensation
A)
again and again equal units of another good.
B)
ever smaller units of another good.
C)
ever larger units of another good
D)
either (a), (b), or (c), depending on the tastes of the consumer involved
Answer:
C) ever larger units of another good
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