Question

The rate at which the consumer substitute one commodity for the other commodity, so that the total utility remains constant is referred as



Marginal Rate of Substitution

Diminishing Marginal Rate of Substitution

Opportunity cost

Marginal Utility

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Answer 1

Explanation:

In economics, the marginal rate of substitution (MRS) is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility. At equilibrium consumption levels (assuming no externalities), marginal rates of substitution are identical.