Ersida purchases both baby food (F) and cloth diapers (C) . The price of a jar of baby food is PF and the price of a box of cloth diapers is PC. Assume that the quantity of baby food is on the horizontal axis and the quantity of cloth diapers is on the vertical axis. At any point on an indifference curve, the marginal rate of substitution of food for cloth diapers can be represented by:
A) MUF / MUC.
B) MUF × PF.
C) MUF / PF.
D) (MUF / MUC) × (PF / PC) .
Correct Answer:
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