Consider the Following Three Market Baskets: If Baskets a and B

Multiple Choice

Consider the following three market baskets: If baskets A and B are on the same indifference curve and if indifference curves exhibit diminishing MRS:

A) C is preferred to both A and B.
B) A and B are both preferred to C.
C) C is on the same indifference curve as A and B.
D) There is not enough information to determine preferences for C relative to the other goods.