Marginal Rate of Substitution Assignment Help

Assignment Help: >> Indifference Curve - Marginal Rate of Substitution

Marginal Rate of Substitution (MRS):

This refers to the amount of one commodity that is required to compensate the consumer for giving up an amount of another commodity for the consumer to maintain the same level of utility.  The marginal rate of substitution of apple for beer (MRSab) is the rate at which apple can be substituted for beer, leaving the consumer at the same level of utility.

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