If the marginal rate of substitution is 3 (in absolute terms), then we know tha The household is willing to give up 3 units of consumption to get the next unit of leisure. The household prefers to get 3 units of consumption together with every unit of leisure. The household is willing to give up 3 units of leisure to get the next unit of consumption. 3 units of consumption are identical to 3 units of leisure.

If the marginal rate of substitution is 3 (in absolute terms), then we know tha The household is willing to give up 3 units of consumption to get the next unit of leisure. The household prefers to get 3 units of consumption together with every unit of leisure. The household is willing to give up 3 units of leisure to get the next unit of consumption. 3 units of consumption are identical to 3 units of leisure.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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