Max Consumes Only Yoghurt and Almonds,and He Is on His

question 149

Multiple Choice

Max consumes only yoghurt and almonds,and he is on his highest possible indifference curve.Bundle A (four yoghurts and two almonds) and bundle B (three yoghurts and three almonds) are on this indifference curve.Between points A and B,what is Max's marginal rate of substitution of yoghurt for almonds?

• A) 1
• B) 2
• C) 3
• D) 1.33

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