marginal rate of substitution

  

Definition

Measure of how much of a commodity a consumer will give up to get one or more units of another commodity, while maintaining the same level of satisfaction.

Use this term in a sentence

  • In trying to understand examples of marginal rate of substitution, we asked kids, how many pieces of one candy would they have to give up, to receive a piece of a different candy.

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  • You may find yourself having to use a marginal rate of substitution to get what you need out of your company.

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  • I wanted to know the marginal rate of substitution and it took me all afternoon to figure out how to do that.

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