Suppose,given Their Initial Endowments of Milk [M] and Cookies [C],you

question 9

Multiple Choice

Suppose,given their initial endowments of milk [M] and cookies [C],you know that Ashley's marginal rate of substitution of cookies for milk [MRS_CM] = 3M/1C,Bill's MRS_CM = 8M/8C,and Carol's MRS_CM = 5M/10C.Given this information,a mutually beneficial trade:

• A)cannot not exist between the three individuals.
• B)would involve Ashley and Bill selling cookies to Carol.
• C)would involve Ashley and Bill selling milk to Carol.
• D)would involve Carol selling milk to Ashley and cookies to Bill.