marginal rate of substitution

Definition

In a production function or a utility function, the ratio at which one argument (input) substitutes for another along an isoquant or indifference curve.

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You need to figure out the marginal rate of substitution and try and figure out a way to improve on it.

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I figured how the marginal rate of substitution would factor into what was happening and I thought everything would go well.

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After reviewing the marginal rate of substitution they were able to determine that changing out the supplier of materials would not have an adverse impact.

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marginal rate MRS