Business, Legal & Accounting Glossary
The rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility.
The marginal rate of substitution (MRS) is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility.
In economics, the marginal rate of substitution is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility. At equilibrium consumption levels, marginal rates of substitution are identical.
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This glossary post was last updated: 25th August, 2019 | 0 Views.