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Economics

(Assume a two good world) Explain why it is that we allow for individuals to have different preferences, but make the claim that when acting rationally, all individuals will choose a consumption bundle where they have the same marginal rate of substitution (since they all face the same relative prices). Are these contradictory statements? Why/why not?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91707858

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