If the Marginal Rate of Substitution of Cookies for Brownies

question 292

Multiple Choice

If the marginal rate of substitution of cookies for brownies equals the price of cookies in terms of brownies when the consumer is on the budget line, the consumer:

• A) is maximizing total utility.
• B) should consume more cookies and fewer brownies to maximize total utility.
• C) should consume fewer cookies and more brownies to maximize total utility.
• D) may or may not be maximizing total utility.

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Definitions:

Open Question

A type of question that cannot be answered with a simple 'yes' or 'no' but requires more detailed response.

Grounded

Mentally and emotionally stable; admirably sensible, realistic, and unpretentious.

Drunk Driving

The act of operating a vehicle while impaired by the effects of alcohol consumption.

Paraphrase

Rewording or summarizing a text or speech to capture the essence of the message in a clearer or simpler manner.