(Figure: Pancakes and Cereal I) At point G, the marginal rate of transformation from pancakes to cereal is 3. What does this mean?

A) Consumers prefer pancakes to cereal by a 3-to-1 margin.
B) Consumers prefer cereal to pancakes by a 3-to-1 margin.
C) The economy must give up producing 3 pancakes to make another bowl of cereal.
D) The economy must give up producing 1 pancake to make 3 more bowls of cereal.
Correct Answer:
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