Figure A11.2 shows the calculation of the marginal rate of substitution. The marginal rate of substitution (MRS) is the magnitude of the slope of an indifference curve. First, we’ll calculate the MRS at point C.
Figure A11.2 shows the calculation of the marginal rate of substitution.The marginal rate of substitution (MRS) is the magnitude of the slope of an indifference curve. First, we’ll calculate the MRS at point C.