Marginal Rate Of Substitution

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Definition: Marginal Rate Of Substitution


Marginal Rate Of Substitution

Quick Summary of Marginal Rate Of Substitution


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.




What is the dictionary definition of Marginal Rate Of Substitution?

Dictionary Definition


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.


Full Definition of Marginal Rate Of Substitution


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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Definition Sources


Definitions for Marginal Rate Of Substitution are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 25th August, 2019 | 0 Views.