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liubo4ka [24]
2 years ago
14

Both bananas and apples cost $1/each. paul is deciding how many apples and bananas to purchase for $100. after careful deliberat

ion, he decides to buy 100 apples and 0 bananas. this is an example of:_____.
Business
1 answer:
forsale [732]2 years ago
3 0

This is an example of <u>Corner Solution.</u>

  • A corner solution is a unique answer to the agent maximisation problem when one of the inputs in the maximised function has a quantity of zero. In layman's words, a corner solution occurs when the chooser is unable or unwilling to make a trade-off between several options.
<h3><u>In consumer theory, what do we mean by "corner solutions"?</u></h3>
  • A corner solution is one in which none of the goods are present in the ideal bundle. 49 / 70. Consumer choice restrictions. The indifference curve is to the budget constraint at the best bundle if there is an inside solution.

To learn more about Corner Solutions, Click the links.

brainly.com/question/15186345

#SPJ4

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Explanation:

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Now, if such things were to happen, a firm may definitely invest in fewer projects because first off it will be more expensive for them to borrow and invest because of the high rates. They will also be discouraged because of the Decrease in economic growth as the chances of their projects doing well will be drop in a depreciating economy.

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4 years ago
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When a seller puts a product in the market, then he tries to have it a market value more than its cost. When such market value is realised then the difference in cost and market value is surplus for the supplier or producer.

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