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Question: 8 it is likely that there will be a corner...

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8. It is likely that there will be a corner point solution when
a) two goods are perfect substitutes and the marginal rate of substitution is equal in magnitude to
the slope of the budget constraint.
b) an indifference curve is tangent to the budget constraint.
c) two goods are perfect complements and the marginal rate of substitution is not equal in
magnitude to the slope of the budget constraint.
d) two goods are perfect substitutes and the marginal rate of substitution is not equal in
magnitude to the slope of the budget constraint.

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