Friday, 8 April 2011

If a consumer’s marginal rate of substitution equals 2 eggs for 1 hamburger then:

The consumer’s indifference curve must be positively sloped.
The consumer’s indifference curve must be convex with respect to
the origin of the graph.
The ratio of the consumers marginal utility of 1 egg to that
of 1 hamburger must equal ½.
All of the given options.

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