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Marginal rate of substitution

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In economics, 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. The marginal rate of substitution is one of the three factors from marginal productivity, the others being marginal rates of transformation and marginal productivity of a factor.

Marginal rate of substitution - Wikipedia Jump to content From Wikipedia, the free encyclopedia Not to be confused with Marginal rate of technical substitution . Concept in consumer economics This article includes a list of general references but lacks corresponding inline citations . Please help improve this article by introducing more precise citations. ( November 2023 ) ( Learn how and when to remove this message ) In economics, 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 sam

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