In a monopsonistic market, a firm's demand curve for labor is equal to its marginal revenue product and has a nonzero slope

Tom is stranded on a deserted island where he can only consume coconuts and crabs. Two of his indifference curves are in the figure above

a) Would Tom prefer his consumption to be at point a or at point b? At point b or at point c? Explain your answers. b) Between points a and b, what is Tom's marginal rate of substitution for a crab?

An increase in second-period income results in

A) an increase in first-period consumption, an increase in second-period consumption, and an increase in saving. B) an increase in first-period consumption, a decrease in second-period consumption, and an increase in saving. C) a decrease in first-period consumption, an increase in second-period consumption, and an increase in saving. D) an increase in first-period consumption, an increase in second-period consumption, and a decrease in saving.