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(Figure: Pancakes and Cereal I) at Point G, the Marginal

Question 31

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(Figure: Pancakes and Cereal I) At point G, the marginal rate of transformation from pancakes to cereal is 3. What does this mean?
(Figure: Pancakes and Cereal I)  At point G, the marginal rate of transformation from pancakes to cereal is 3. What does this mean? ​   A)  Consumers prefer pancakes to cereal by a 3-to-1 margin. B)  Consumers prefer cereal to pancakes by a 3-to-1 margin. C)  The economy must give up producing 3 pancakes to make another bowl of cereal. D)  The economy must give up producing 1 pancake to make 3 more bowls of cereal.


A) Consumers prefer pancakes to cereal by a 3-to-1 margin.
B) Consumers prefer cereal to pancakes by a 3-to-1 margin.
C) The economy must give up producing 3 pancakes to make another bowl of cereal.
D) The economy must give up producing 1 pancake to make 3 more bowls of cereal.

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