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Park is always willing to give up 1 orange for 4 tangerines. (1)What is the size ofMRS TO (marginal rate of substituting tangerine for orange)
Park is always willing to give up 1 orange for 4 tangerines.
(1)What is the size ofMRSTO(marginal rate of substituting tangerine for orange) for Park?
(2)What is the economic meaning of MRSTO?
(3) Suppose that the price of one orange is $1 and the price of one tangerine is $0.30.Which fruit should Park buy between orange and tangerine?Use the economic meaning of MRSTOto justify your answer
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