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Commerce · Q811

Economics

Graduate and Post Graduate · Commerce · question 811

Q811

If the MRSxy (Marginal Substitution Rate) for consumer A is greater than that of MRSxy (Marginal Substitution Rate) of B, then profit for consumer A will be assuming that

A.
More quantity of commodity Y than exchange X with consumer B
B.
Consumer B to exchange XY for X for more than X
C.
Exchanging X or Y
D.
Nothing can be said without additional information
Answer

Answer: Option D

Solution

Answer: Option D
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