Define: Marginal Rate Of Substitution

UK Accounting Glossary

Definition: 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.


Advertisement



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.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/marginal-rate-of-substitution/
Modern Language Association (MLA):
Marginal Rate Of Substitution. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 18, 2019 https://payrollheaven.com/define/marginal-rate-of-substitution/.
Chicago Manual of Style (CMS):
Marginal Rate Of Substitution. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/marginal-rate-of-substitution/ (accessed: November 18, 2019).
American Psychological Association (APA):
Marginal Rate Of Substitution. PayrollHeaven.com. Retrieved November 18, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/marginal-rate-of-substitution/

Definition Sources


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


This glossary post was last updated: 21st July 2019.