Explain Why Having Different Marginal Rates of Substitution Is Necessary

question 12

Essay

Explain why having different marginal rates of substitution is necessary for trade to occur.

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Definitions:

Emmanuel Kant

A German philosopher who profoundly influenced modern philosophy with his works on ethics, aesthetics, and epistemology, particularly known for his theory of the moral imperative.

Absolute Rules

Laws or principles that are seen as universally true and not subject to change or exception.

Intuitive Understanding

An immediate grasp or recognition of patterns and principles without reliance on conscious reasoning.

General Will

A concept in political philosophy, particularly within Rousseau's work, referring to the collective will of the citizens of a state that aims at the common good.