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A consumer has preferences over two goods, coconuts and fish. The consumer prefers more of each good to less and has a diminishing marginal rate
A consumer has preferences over two goods, coconuts and fish. The consumer prefers more of each good to less and has a diminishing marginal rate of substitution between the two goods. Draw a diagram showing indifference curves and the budget constraint of the consumer. Explain how the optimal consumption choice is found.
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