Figure 21-7 -Refer to Figure 21-7.Which of the Following Comparisons Is Correct

question 101

Multiple Choice

Figure 21-7
-Refer to Figure 21-7.Which of the following comparisons is correct regarding the marginal rate of substitution (MRS) of donuts for cake?

• A) The MRS is greater between bundles A and B than between bundles B and C.
• B) The MRS is greater between bundles B and C than between bundles A and B.
• C) The MRS is the same between bundles A and B and bundles B and C because all three bundles lie on the same indifference curve.
• D) The MRS is greater between bundles E and B than between bundles B and D.

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