By selecting a bundle where MRS = MRT, the consumer is saying
A) “I value my last unit of each good equally.”
B) “I am willing to trade one good for the other at the same rate that I am required to do so.”
C) “I will equate the amounts spent on all goods consumed.”
D) All of the above.
ANSWER
B
Place an order in 3 easy steps. Takes less than 5 mins.