Use the Following to Answer Questions 40-45

question 13

Multiple Choice

Use the following to answer questions 40-45:
Figure 15.10
-(Figure 15.10) Suppose the economy is achieving output efficiency at point I, where the marginal rate of transformation (MRT) is 1/4 and the marginal product of labor in the cereal industry is 12. Which of the following statements is (are) TRUE?

• A) The marginal rate of substitution (MR
• S) between pancakes and cereal is 4.
• B) The marginal product of capital in the pancake industry divided by the marginal product of capital in the cereal industry is 4.
• C) The marginal product of capital in the pancake industry is 3.
• D) MRS/MRT = 1/4.

---

Definitions:

Logic

The systematic study of the principles of valid inference and correct reasoning.

Statistics

The science of collecting, analyzing, presenting, and interpreting data.

Basic Statistics

The foundational principles and techniques for collecting, analyzing, interpreting, and presenting data.

Totals

The sum amounts resulting from the addition of numbers, quantities, or items.