Multiple Choice
If the marginal rate of substitution of cookies for brownies equals the price of cookies in terms of brownies when the consumer is on the budget line, the consumer:
A) is maximizing total utility.
B) should consume more cookies and fewer brownies to maximize total utility.
C) should consume fewer cookies and more brownies to maximize total utility.
D) may or may not be maximizing total utility.
Correct Answer:
Verified
Correct Answer:
Verified
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