Marginal rate of substitution

Marginal Rate of Substitution
Calculations
Sometimes referred to as MRS, the marginal rate of substitution measures the rate at which an individual must give up one asset to obtain a single additional unit of a second asset, ...

Marginal rate of substitution (MRS)- (1) In consumption, the slope of an indifference curve, ...

Marginal Rate of Substitution
The rate at which an individual must give up "good A" in order to obtain one more unit of "good B", while keeping their overall utility (satisfaction) constant.

The marginal rate of substitution (MRS) between good i and good j is equal to the ratio between the marginal utility associated respectively to good i and good j: ...

MRS
Marginal Rate of Substitution
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Marginal rate of substitution
In a production function or a utility function, the ratio at which one argument (input) substitutes for another along an isoquant or indifference curve.
Marginal rate of technical substitution ...

Marginal rate of substitution [r]: The rate at which a person has to substitute the possession of one product for another in order to maintain a constant level of utility. [e] ...

Important ideas developed in such analysis include marginal cost, marginal revenue, marginal product, marginal rate of substitution, marginal propensity to save, and so on.

At point B the marginal rate of substitution (MRS) is equal to 2, while at point C the marginal rate of substitution is equal to 3. Only at point B is consumption in balance with production (MRS=MRT).

The elasticity of substitution (full name should be the marginal rate of substitution of the relative allocation) affects the real interest rate.

See also: Substitution, Marginal cost, Capital structure, Capital markets, Marginal utility