Mr.Black always consumes coffee and cream in fixed proportions-8 ounces of coffee to 1 ounce of cream.This implies that for Mr.Black the marginal rate of substitution of coffee for cream is:
A)1/8.
B)8.
C)diminishing but between 8 and 1.
D)undefined.

Question

Quizplus · Accepted Answer

Mr. Black consumes coffee and cream in fixed proportions, meaning they are perfect complements. In such cases, the marginal rate of substitution is undefined because the consumer does not substitute one good for the other.

MrBlack Always Consumes Coffee and Cream in Fixed Proportions-8 Ounces