In an attempt to cling to his joyful college days, Jerry consumes only cold cereal (C) and hot "so good your knees buckle" soup (S) from down the street. Thanks to the law of diminishing returns, his marginal rate of substitution between the two is MRS=2C/S. [In this context, the MRS is the amount of cereal he must give up to stay indifferent if he is given an additional serving of soup. For example, if Jerry consumes 4 cereals and 2 soups, he is willing to give up 4 cereals (2*4/2) to get 1 additional soup.] Cereal costs $2 per serving (PC = 2), while soup costs Jerry $8 per serving (PS = 8).

1.1.

Does the trade-off implied by the MRS strike you as reasonable? (Consider when Jerry has a lot of soup but little cereal and conversely.) Why or why not?

		A.Yes, because when Jerry has little soup his MRS is low, but when Jerry has a lot of soup his MRS is high.
		B.No, because when Jerry has little soup his MRS is high, but when he has a lot of soup his MRS is low.
		C.No, because when Jerry has little soup his MRS is low, but when he has a lot of soup his MRS is high.
		D.Yes, because when Jerry has little soup his MRS is high, but when Jerry has a lot of soup his MRS is low.