Econ212+Spring2013+Le_Linh+Notes_for_Week_03

This case doesnt have much economic significanceit is

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Unformatted text preview: hat we couldn’t have started at an optimal bundle. This case represents interior optimum Exceptions: 1) IC has no tangent line. This case doesn’t have much economic significance—it is more of a nuisance than anything else. 2) Necessary condition for a bundle to be optimal choice: If the optimal choice involves consuming some of both goods—so that it is an interior optimum—then necessarily the indifference curve will be tangent to...
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This note was uploaded on 02/25/2014 for the course ECON 212 taught by Professor Mirobins during the Spring '08 term at Mt. Holyoke.

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