Assume a two good world, (Assume a two good world) Explain

Assume a two good world

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(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?

Reference no: EM13999034

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