Frieda enjoys cooking and baking.Her utility function is U(C,B)= 6C + 3B,where C is the number of hours she spends cooking and B is the hours she spends baking.What is Frieda's MRS of cooking with baking?
A) 1/6
B) 2
C) 6
D) It cannot be determined from the given information.

Question

Quizplus · Accepted Answer

The Marginal Rate of Substitution (MRS) is calculated by taking the ratio of the marginal utilities of the two goods. In this case, the marginal utility of cooking (MU_C) is 6 and the marginal utility of baking (MU_B) is 3. Therefore, MRS = MU_C / MU_B = 6 / 3 = 2.

Frieda Enjoys Cooking and Baking