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Themarginal rate of substitution (MRS) can be defined as:
The
marginal rate of substitution (MRS) can be defined as:
Thechange in the consumer’s utility when one good is substituted for another.
change in the consumer’s utility when one good is substituted for another.
The absolute value of the slope of the indifference curve.
Theamount of one good that the consumer is willing to trade for one unit of theother good.
amount of one good that the consumer is willing to trade for one unit of the
other good.
Theratio of the total amounts of two goods.
ratio of the total amounts of two goods.
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