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Consider the Following Three Market Baskets If Basket a and Basket B Are on the Same

Question 6

Multiple Choice

Consider the following three market baskets.  Basket  Good x Good yA28 B102C65\begin{array} { c c c } \hline \text { Basket } & \text { Good } x & \text { Good } y \\\hline \mathrm { A } & 2 & 8 \\\mathrm {~B} & 10 & 2 \\\mathrm { C } & 6 & 5 \\\hline\end{array}
If Basket A and Basket B are on the same indifference curve, preferences satisfy the usual assumptions, and the indifference curves have a diminishing marginal rate of substitution,


A) Basket C is preferred to Basket A
B) Basket A is preferred to Basket C
C) The consumer is indifferent between Basket A and Basket C
D) There is not enough information to determine how the consumer would rank Basket A relative to Basket C.

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