- Marginal Rate of Substitution (MRS): Rate at which a consumer gives up one good for another to maintain constant utility. - Marginal Rate of Technical Substitution (MRTS): Rate at which a firm substitutes one input for another to maintain constant output. - Diminishing Marginal Utility: The concept that the additional utility gained from consuming one more unit of a good decreases as consumption increases. - Equi-marginal utility: Condition for consumer equilibrium where the ratio of marginal utility to price is equal for all goods.
The rate at which the consumer is willing to substitute one good for another without changing the level of satisfaction is known as :
Asked in UPSC CAPF 2014 · Topic: Nature of Indian Economy (Developing Economy Characteristics)
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