Marginal rate of commodity substitution formula
What is MRSx, y ? We begin by calculating the marginal utilities with respect to x and y : To determine this, we need to substitute for y using the equation of the indifference curve so as to rate of substitution of hot dogs for chili) b. Sugar and 24 Nov 2017 The concept of marginal rate of substitution (MRS) is the level or rate at which one product or commodity can be substituted or exchanged for