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The investor's optimal portfolio is found at the point of tangency of the efficient frontier with the indifference curve. This point marks the highest level of satisfaction the investor can obtain. This is shown in Figure 3. R is the point where the efficient frontier is tangent to indifference curve C 3, and is also an efficient portfolio ...
One can also refer to each point on the indifference curve as rendering the same level of utility (satisfaction) for the consumer. In other words, an indifference curve is the locus of various points showing different combinations of two goods providing equal utility to the consumer.
The American Customer Satisfaction Index (2012) found that response rates for paper-based surveys were around 10% and the response rates for e-surveys (web, wap and e-mail) were averaging between 5% and 15% - which can only provide a straw poll of the customers' opinions.
The theory of consumer choice is the branch of microeconomics that relates preferences to consumption expenditures and to consumer demand curves.It analyzes how consumers maximize the desirability of their consumption (as measured by their preferences subject to limitations on their expenditures), by maximizing utility subject to a consumer budget constraint. [1]
This is described as the "indifference price point" or IPP. The IPP refers to the price at which an equal number of respondents rate the price point as either "cheap" or "expensive". Finally, the intersection of the "too cheap" and "too expensive" lines represents an "optimal price point" or OPP.
In Fig. 13 the point x is a point of tangency which is also a point at which indifference curves are locally separated by the dashed price line; but since they are not globally separated the point is not an equilibrium according to Arrow and Debreu's definition. Fig. 14. A Pareto optimum which is not a 'competitive equilibrium'
If Walras's law has been satisfied, the optimal solution of the consumer lies at the point where the budget line and optimal indifference curve intersect, this is called the tangency condition. [3] To find this point, differentiate the utility function with respect to x and y to find the marginal utilities, then divide by the respective prices ...
The Samuelson condition, due to Paul Samuelson, [1] in the theory of public economics, is a condition for optimal provision of public goods.. For an economy with n consumers, the conditions is: