John is in kindergarten and likes Bagels and Croissants for breakfast; the two taste exactly the same to him and he cannot tell the difference between them.   a. What is John’s marginal rate of substitution of Bagels in place of Croissants? Answer: [ Select ] The MRS is 2 Croissants for per Bagel. His indifference curves are bowed inward with slopes equal to -2. The MRS is 2 Croissants for 3 Bagels. His indifference curves have positive slopes. The MRS is different along each indifference curve with an unknown negative slope. The MRS is constant and equal to 2. His indifference curves form a right angle. MRS is constant and equal to 1. His indifference curves are straight lines with slopes equal to -1. b. John has $12 to spend on Bagels(B) and Croissants(C) this week. Bagels costs $3 per bagel and Croissants costs $2.00. What is the budget line for John? Assume we put Croissants on the vertical axis. Answer: [ Select ] C = 12 – 1.5B C = 6 – 3B 6 = C + 3B C = 6 - 1.5B 4B + 3C = 12 c. What is John’s optimal consumption bundle? Answer: [ Select ] 4 Croissants and 2 Bagels 3 Croissants and 3 Bagels 3 Croissants and 2 Bagels 6 Croissants and 0 Bagels 0 Croissants and 4 Bagels多重下拉选择题