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What is the size of mrsot

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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.

Reference no: EM132498149

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