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Define(a) Marginal rate of substitution(b) Law of diminishing marginal utility

      

Introduction to microeconomics

  

Answers


KevinNyabute
(a) Marginal rate of substitution - refers to the rate at which a consumer may prefer product Y over product X.

(b) Law of diminishing marginal utility - states that as a consumer increases the consumption of a product by an extra unit while keeping consumption of other products constant, the marginal utility derived from that product declines.
kevinnyabute answered the question on February 14, 2018 at 08:12


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