What is marginal rate of substitution – InterviewSolution

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1.	What is marginal rate of substitution
Answer» Here is your answer the marginal rate of SUBSTITUTION (MRS) is the rate at which a consumer can give up some amount of one GOOD in exchange for another good while maintaining the same level of utility. At equilibrium CONSUMPTION LEVELS (ASSUMING no externalities),marginal rates of substitution are identical. Hope you like it.

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