O The MRS is the trade-off between grain and free time that Angela is constrained to make. O At a point to the left of Angela's optimal choice, the MRS is smaller than the MRT. At a point to the right of Angela's optimal choice, she is less willing to trade grain for free time than at her optimal choice. O Since all Angela's indifference curves have the same MRS at 16 hours of free time, any choice of grain at 16 hours of free time is optimal.

O The MRS is the trade-off between grain and free time that Angela is constrained to make. O At a point to the left of Angela's optimal choice, the MRS is smaller than the MRT. At a point to the right of Angela's optimal choice, she is less willing to trade grain for free time than at her optimal choice. O Since all Angela's indifference curves have the same MRS at 16 hours of free time, any choice of grain at 16 hours of free time is optimal.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.4P

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