marginal rate of substitution
marginal rate of substitution
Marginal rate of substitution tends to decrease with passage of units consumptions.
Yes. The height of an indifference curve is the marginal rate of substitution.
Texas borders the Gulf of Mexico, which is a marginal sea of the Atlantic Ocean.
Marginal Rate
As a matter of fact, law of diminishing marginal rate of substitution conforms to the law of diminishing marginal utility. According to law of diminishing marginal utility, as a consumer increases the consumption of a good, its marginal utility goes on diminishing. On the contrary, if the consumption of a good decreases, its marginal utility goes on increasing.
In economics, the marginal rate of substitution can be determined by calculating the ratio of the marginal utility of one good to the marginal utility of another good. This ratio represents the rate at which a consumer is willing to trade one good for another while maintaining the same level of satisfaction.
When the total product is increasing but at a decreasing rate, the marginal product will also decrease.
Your marginal rate as compared to your effective rate.
MEC is the expected rate of return on capital and MEI is the expected rate of return on investment.
The marginal rate of technical substitution is the rate at which one input can be substituted for another input in a production process while keeping the level of output constant.