Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy.
Figure 6-2
-Refer to Figure 6-2.Relative to point D,Tim's marginal rate of substitution of cookies for milk [MRS_CB] at point C is _____.

Question

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy.
Figure 6-2

-Refer to Figure 6-2.Relative to point D,Tim's marginal rate of substitution of cookies for milk [MRS_CB] at point C is _____.

Quizplus · Accepted Answer

Tim's marginal rate of substitution of cookies for milk is the same at all points on the same indifference curve. Therefore, his MRS_CB at point C is the same as his MRS_CB at point D.

Figure 6-2 Shows an Edgeworth Box with the Preferences of Kathy