Multiple Choice
Suppose Joe's MRS for cookies with crackers is 6 crackers per cookie.Also assume that Mary's MRS for cookies with crackers is 3 crackers per cookie.Assuming that these rates of substitution don't depend on the amounts consumed,which of the following trades would make both Joe and Mary better off?
A) Joe gives Mary 5 crackers in exchange for a cookie.
B) Joe gives Mary 2 crackers in exchange for a cookie.
C) Joe gives Mary 6 crackers in exchange for a cookie.
D) There is not enough information to answer the question.
Correct Answer:
Verified
Correct Answer:
Verified
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