Consumers A, B, and C consume food and clothing in the same market. Each of them has Cobb-Douglas preferences and is consuming their optimal bundle. The price of food is $3 and the price of clothing is $7. Which of the following is a true statement at these optimal bundles? ✓ A has the highest MRS B has the highest MRS C has the highest MRS All of A, B, and C have the same MRS We need more information to know which consumer's MRS is largest

Consumers A, B, and C consume food and clothing in the same market. Each of them has Cobb-Douglas preferences and is consuming their optimal bundle. The price of food is $3 and the price of clothing is $7. Which of the following is a true statement at these optimal bundles? ✓ A has the highest MRS B has the highest MRS C has the highest MRS All of A, B, and C have the same MRS We need more information to know which consumer's MRS is largest

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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