1. Education

Your suggestion is on its way!

An email with a link to:


was emailed to:

Thanks for sharing About.com with others!

Interior Solution
<Back to Last Page>     <Full Glossary>

Definition of Interior Solution: An interior solution is a choice made by an agent that can be characterized as an optimum located at a tangency of two curves on a graph.

A classic example of an interio solution is the tangency between a consumer's budget line (characterizing the maximum amounts of good X and good Y that the consumer can afford) and the highest possible indifference curve. The slope of that tangency is where:

(marginal utility of X)/(price of X) = (marginal utility of Y)/(price of Y)

Contrast interior solution with corner solution. (Econterms)

Terms related to Interior Solution:

About.Com Resources on Interior Solution:

Writing a Term Paper? Here are a few starting points for research on Interior Solution:

Books on Interior Solution:

Journal Articles on Interior Solution:

<Return to Main Page>

©2015 About.com. All rights reserved.