Question

Explain the meaning of diminishing marginal rate of substitution with the help of an example

Answer 1

Charter Acts of 1813 was an Act of the Parliament of the United Kingdom which renewed the charter issued to the British East India Company, and continued the Company's rule in India. However, the Company's commercialmonopoly was ended, except for the tea trade and the trade with China.

Answer 2

Diminishing marginal rate of substitution implies rate at which a consumer is willing to substitute one goods for each additional unit of the other goods tends to decline when the consumer consumes more of that goods.