Steve's utility function is U = BC, where B = veggie burgers per week and C = packs of cigarettes per week. Here, MUB=C and MUC = B. What is his marginal rate of substitution if veggie burgers are on the vertical axis and cigarettes are on the horizontal axis? O A. MRS = BC. OB. MRS-C/B. O C. MRS = B/C. OD. MRS= - BC. O E. MRS= -B/C. B, Veggie burgers per week 120 110- 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0- 0 1800 1200 900 600 + 12 24 36 48 60 72 84 96 108 120 C, Packs of cigarettes per week
Steve's utility function is U = BC, where B = veggie burgers per week and C = packs of cigarettes per week. Here, MUB=C and MUC = B. What is his marginal rate of substitution if veggie burgers are on the vertical axis and cigarettes are on the horizontal axis? O A. MRS = BC. OB. MRS-C/B. O C. MRS = B/C. OD. MRS= - BC. O E. MRS= -B/C. B, Veggie burgers per week 120 110- 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0- 0 1800 1200 900 600 + 12 24 36 48 60 72 84 96 108 120 C, Packs of cigarettes per week
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Steve's utility function is U = BC, where B = veggie burgers per week and
C = packs of cigarettes per week. Here, MUB = C and MUC = B. What is his
marginal rate of substitution if veggie burgers are on the vertical axis and
cigarettes are on the horizontal axis?
OA. MRS= BC.
O B. MRS - C/B.
C. MRS= B/C.
D. MRS= BC.
-
OE. MRS - B/C.
OR.
B, Veggie burgers per week
120
110-
100-
90-
80-
70-
60-
50-
40-
30-
20-
10-
0+
0
12 24 36 48 60 72 84 96
C, Packs of cigarettes per week
1800
1200
900
600
108 120
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