BEST ANSWER up for grabs! Short question on Marginal Rate of Substitution! Thanks!?

a) The consumer is not maximizing her welfare b/c to achieve the optimal bundle her MRS = Px/Py, so in this question MRS = y/x = 3/1, since she's willing to let go of 3 croissants for 1 cup of coffee.

MRS = Px/Py

3 = 1.00/1.50

3 = .66667

Since 3 > .667

She is not at an optimal bundle.

b) I think she should buy more coffee since she will get more 'bang for the buck'...

Sure she is =) A warming cup of cheap coffee to wake you up on a cold winter morning like this would be much more rewarding and much less fatty than 3 croissants! Although, she might get hungry a bit later - which she wouldn't if she had eaten those pastries. Soo.. depends if she wanted to lose weight and keep her money, or gain weight and lose money.

a million.The application would be maximized while MUp/MUt=Pp/Pt=a million/2=0.5=MRS,p=peanut butter,t=tuna. A= MRS=0.25/2.40-one=0.10 B= MRS=0.31/a million.50=0.20 C=MRS=0.40 two/0.80 4=0.5 D=MRS=0.66/0.33=2 the main appropriate answer is C. 2.the main important point of tuna fish intake is D.based on the rule of thumb of diminishing marginal application, the upward push in tuna intake has brought about the marginal application to say no from A=2.40-one,B=a million.50,C=0.80 4 and D=0.33. D has the least marginal application of tuna intake.

have two slices of toast instead,