Question
Park is always willing to give up 3 tangerines for 1 orange. (1)What is the size of MRS OT (marginal rate of substituting orange for
Park is always willing to give up 3 tangerines for 1 orange.
(1)What is the size of MRSOT (marginal rate of substituting orange for tangerine) for Park?
(2)What is the economic meaning of MRSOT?
(3) Suppose that the price of one orange is $1 and the price of one tangerine is $0.25.Which fruit should Park buy between orange and tangerine?Use the economic meaning of MRSOT to justify your answer.
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Contemporary Labor Economics
Authors: Campbell R. McConnell, Stanley L. Brue, David Macpherson
11th Edition
1259290602, 1259290603, 978-1259290602
