Microeconomics

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Moderate

Optimization with Leontief Preferences

MICRO-XLN1NR

For Leontief type indifference curves (the L-shaped ones), what must be true about the optimal bundle?

A

It will be on one of the axes because for one of the goods, the optimal quantity is zero.

B

It will be at a kink point of the curves.

C

It will be on a horizontal arm of the curve.

D

It will be on a vertical arm of the curve.