) What is the marginal rate of substitution, MRS? State the definition and explain, in words, what...

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) What is the marginal rate of substitution, MRS? State the definition and explain, in words, what it means.

b) MRS will have an influence on the shape of an indifference curve. What influence?

c) Often, we assume that consumers have diminishing MRS. Explain what that means and how it is reflected in indifference curves.

d) Can you draw an indifference curve that does not have diminishing MRS, but that is still allowed?

Related Book For answer-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Posted Date: Mar 14, 2024 08:39 PM

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) What is the marginal rate of substitution, MRS? State the definition and explain, in words, what...

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a The marginal rate of substitution MRS is a concept in economics used to describe the rate at which a consumer is willing to exchange one good for an... View the full answer

Microeconomics

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