When Joe Maximizes Utility, He Finds That His MRS of X

question 5

Multiple Choice

When Joe maximizes utility, he finds that his MRS of X for Y is greater than Px/Py. It is most likely that:

• A) Joe's preferences are incomplete.
• B) Joe's preferences are irrational.
• C) Joe is not consuming good X.
• D) Joe is not consuming good Y.