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Ambrose has an indifference curve with equation x2= 20 − 4 x 1/21. when ambrose is consuming the bundle (4, 16), his marginal rate of substitution is 25/4.

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The Ambrose indifference curve may need double-checking as the equation could possibly suffer from entry error. Bundle consumption should have a 3/15 impact regardless of marginal rate. Therefore, it is likely human computational error accounting for the marginal substitution rate we are seeing. Also, the consumption bundle does not seem correct.
User David Smith
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