Question

For perfect substitutes utility function the marginal rate of substitution is

Answer 1

For perfect substitutes utility function, the marginal rate of substitution is constant and equal to the ratio of the prices of the two goods.

Step-by-step explanation:

For perfect substitutes utility function, the marginal rate of substitution is constant and equal to the ratio of the prices of the two goods. In other words, the marginal rate of substitution is the amount of one good that a consumer is willing to give up to obtain an additional unit of the other good, and it remains the same regardless of the quantities consumed. This is because the two goods are perfect substitutes and provide the same level of utility to the consumer.