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The O2 sensor detects the amount of free oxygen in the exhaust stream, and adjusts the air/fuel ratio and timing depending on the reading it sends the computer.
Not sure where you live?, but I just purchased one for my 90 ranger 2wd 2.9l and it was only $72 canadian dollar = $54 americian dollars. Why so much? what type of model? (after market o2 sensor)
Just read an article that claims an O-2 can be made to work like new again by simply removing the carbon deposits with a torch. I think i'll give that a try.
My Ranger was running rough and threw a CEL code for the O2 sensor. We tried cleaning it with a torch and it did run better but not perfect. I bought a new sensor from Napa Auto parts today for $55 (it was a Bosch). Upon removal of the old one they were found to be identical. The Motorcraft was made by Bosch as could be seen from the stamped label. Anyway, the good news is that my truck no longer stumbles or occasionally misses. Well worth the $55 given the importance of the O2 sensor. Note that I only replaced the upstream O2 sensor closest to the engine.