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Ying and Fei's Marginal Rate of Substitution of Purses for Shoes

Question 65

Multiple Choice

Ying and Fei's marginal rate of substitution of purses for shoes is 2.5. Assuming the allocation of purses and shoes is Pareto efficient, the price ratio of purses to shoes is ____.


A) 2.5
B) 4
C) 2
D) 5

Correct Answer:

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