Question

Difference between MOC and MRS

Answer 1

moc is the rate of sacrifice of one good to gain an additional unit if another good. moc is slope of ppc. moc increases because resources are limited the ppc is convex to the point of origin

mrs is the rate at which a consumer is required to sacrifice one good to consume an additional unit of another good keeping the consumer indifferent.mrs is slope of ic.mrs decreases because of law of diminishing marginal utility thus it is convex to the point of origin