Question

When the relationship between creating and claiming value is done to the fullest extent possible, the line is called the_____ __________ _______. It contains a point where "there is no agreement that would make any party better off without decreasing the outcomes to any other party."p66-67

Answer 1

The line described in the question is called the consumer equilibrium point. It refers to the point where a consumer maximizes their satisfaction while staying within their budget constraint.

Step-by-step explanation:

The line described in the question is called the consumer equilibrium point.

Consumer equilibrium refers to the point where a consumer maximizes their satisfaction or utility while staying within their budget constraint. At this point, the ratio of the prices of goods is equal to the ratio of the marginal utilities of those goods.

For example, let's say a consumer has a limited budget and they want to purchase two goods, A and B. The consumer will only achieve consumer equilibrium when the ratio of the price of good A to the price of good B equals the ratio of the marginal utility derived from good A to the marginal utility derived from good B.