At the point of tangency of an indifference curve with a budget line:

by
Question:

At the point of tangency of an indifference curve with a budget line:

A.

MRSxy =Px/Py

B.

MRSxy>Px/PY

C.

MRSxy<Px/PY

D.

MRSxy≥Px/PY

Answer» a. MRSxy =Px/Py

Note: The above multiple-choice question is for all general and Competitive Exams in India.