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Q: What are market rate of substitution?
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What is Marginal Rate of Substitution?

marginal rate of substitution


What is Definition marginal rate of substitution?

marginal rate of substitution


Law of diminishing marginal rate of substitution?

Marginal rate of substitution tends to decrease with passage of units consumptions.


Is the height of an indifference curve the marginal rate of substitution?

Yes. The height of an indifference curve is the marginal rate of substitution.


Explain why the constant elasticity of substitution is considered superior to marginal rate of technical substitution?

Heap


What does the slope of the indifference curve reveal?

marginal rate of substitution


Why isoquants convex?

diminshing marginal rate of substitution between factors


What is marginal revenue of technical substitution?

The marginal rate of technical substitution refers to the rate at which one input can be substituted for another input without changing the level of output. It can also be defined as the more complete name for the marginal rate of substitution between factors in a production function, sometimes used to distinguish it from the analogous concept in a utility function.


Why the marginal rate of substitution between two goods must equal the ratio of prices of the goods for the consumer to achieve maximum satisfaction?

the marginal rate of substitution is equal to the ratio of the goods' margial utilities when satisfaction is maximized


What is a market interest rate?

The market interest rate is the rate of interest on cash deposits or loan which is determined by the market. Factors such as demand and supply of cash in the market


At the point of consumer equilibrium the slope of the budget line is equal to the?

Marginal rate of substitution


What are the influence of marginal rate substitution on indifference curve?

the two difference of curve is radios