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What is tom marginal rate of substitution

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Reference no: EM133203063

Tom has the following utility function: U = X1 + X2

What kind of a utility function does this equation represent?, i.e. does it represent perfect substitutes, perfect complements, imperfect substitutes or something else?

What is Tom's Marginal Rate of Substitution (MRS) between X1 and X2? Your answer should be a specific number.

Does Tom's MRS change or stay constant as he consumes more of X2? Explain briefly

Reference no: EM133203063

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