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Explain with the help of a …

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Explain with the help of a numerical example, the meaning of diminishing marginal rate of substitution.
  • 2 answers

Kapil Upadhyay 7 years, 1 month ago

Diminishing mrs can be defined as the amount of one good sacrifice to gain one additional unit of another commodity

Chesta Pawan Manchanda 7 years, 1 month ago

It is the ratio of number of sacrificed unit to increase one more unit of another good∆y/∆x is the formula of MRS . Let the sacrificed unit of good y is 2 and to increase one more unit of good x so MRS will be 2/1 =2
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