(Solved): Consider two points on a consumer's indifference curve. (Each point represents a particular bundle ...

Consider two points on a consumer's indifference curve. (Each point represents a particular bundle of goods.) What can be said about those two points? The more northeast point provides more utility. They provide the same utility. The marginal product of each point is diminishing. The more southwest point provides more utility. At which point on a consumer's indifference curve has she made an optimal consumption choice? At the point where the indifference curve is flat. At the point where the indifference curve crosses the budget constraint. At the point where the indifference curve is tangent to the budget constraint. At the point where the indifference curve is vertical. At the point on the indifference curve which is inside the budget constraint. Why do supply curves usually slope upwards? Because of diminishing marginal products of inputs. Because of diminishing marginal utility. Because resources, including inputs, are scarce. Because indifference curves might be straight lines. Because capital tends to deteriorate with time. Suppose you know of some economy which makes fans using labor and capital as inputs. The MP of both capital and labor are diminishing, but the MP of labor diminishes at faster rate. What can we conclude? Firms in this economy will prefer to only employ labor to make fans. Firms will invest in technological innovation until the MP of both capital and labor are increasing. Firms will want to employ only capital to make fans. Firms will invest in technological innovation to make the MP of labor and capital are equal. Firms will want to employ a combination of labor and capital to make fans. \[ (0, C \] Choice from PPC The slope of the indifference curve is larger than the slope of the PPC at the optimal point. The slope of the indifference curve is smaller than the slope of the PPC at the optimal point. The slope of the indifference curve is equal to the slop of the PPC at the optimal point. The slope of the indifference curve is unknown at the optimal point.