00 AT&T; LTE 8:24 PM Assignments Micro Assignment Detail Submission Grade How is

Question

00 AT&T; LTE 8:24 PM Assignments Micro Assignment Detail Submission Grade How is a budget line similar to a production possibilities frontier? How do they differ? Question 2 If the price of a good rises and the consumer's budget remains the same, what happens to the consumer's consumption possibilities? Question 3 What is the utility-maximizing rule? Question 4 Explain why total utility is maximized when the marginal utility per dollar from a good is equal to another good? Question 5 Summarize the law of the "principle of diminishing marginal utility" describing the process of utilitv maximization Courses Calendar To Do Notifications Messages

Explanation / Answer

First question is answered below

1. A budget constraint is similar to a PPF in the sense that both of them talk about constrained consumption or production. The word 'constrained' is the key term here.

While budget line talks about how much of goods a person can consume given his limited income, a PPF talks about how much inputs a producer can use given his limited cost budget.

One difference between the two is that while budget line talks about the consumption side, the PPF talks about production side.

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