Mika's Marginal Rate of Substitution of Apples (A) for Oranges

question 37

Multiple Choice

Mika's marginal rate of substitution of apples (A) for oranges (O) is 5 (MRS_AO = 5) . This information implies that:

• A) Mika is willing to trade away five apples for one more orange, holding her utility constant.
• B) Mika will move to a higher indifference curve if she trades away five apples for one more orange.
• C) Mika should own five times as many apples as oranges.
• D) the slope of the indifference curve is five and thus upward sloping.

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