The concept of 'Consumer Equilibrium' under indifference curve analysis is achieved when:
A. The budget line is tangent to the highest attainable indifference curve
B. Marginal utility is zero
C. Total utility is maximum without budget constraint
D. Price equals average cost
Answer: Option A
Solution (By JKSSB Mock Tests)
Consumer equilibrium occurs at the point where the budget line is tangent to an indifference curve, equating the marginal rate of substitution with the price ratio.
Explanation:
Dualism refers to the coexistence of a modern, capital-intensive sector alongside a traditional, labour-intensive sector within the same economy.
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