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a) i = 800 units, ii = 250 units, iii = 60%
b) Explanation and Definition of the MOS. Play-it has the better MOS in absolute terms, although Tread-it has the better MOS when measured as a percentage, better to use the percentage for comparisons across different industries (hiking shoes and wooden toys).
The economy consists of two consumers, A and B. Both consumers are endowed with one unit of good 1 and one unit of good 2. Consumer A is entirely indi?erent between all consumption
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