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Mike and John are camping and each has brought cans of tuna sh and baked beans. Mike's marginal rate of substitution (MRS) of tuna for
Mike and John are camping and each has brought cans of tuna sh and baked beans. Mike's marginal rate of substitution (MRS) of tuna for beans is 2.0, which means he is willing to give up 2.0 cans of beans for one can of tuna. John's MRS of tuna for beans is 2.5. What trade, if any, should Mike and John make to reach an ecient allocation of tuna and beans assuming both goods have diminishing marginal utility
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