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2 years ago

Refer to Figure 4.7.1 above. Which of the expressions in the figure is the Lagrangian

SAT

1 answer:

Arturiano [62]2 years ago

3 0

Using the image attached. The option that shows the marginal rate of substitution is option b.

<h3>What is marginal rate of substitution?</h3>

The marginal rate of substitution (MRS) is known to be the number of a good that a consumer is said to be willing to take in when compared to another good, only if the new good is said to be equally satisfying.

The marginal rate of substitution (MRS) is also described as the rate in which a specific units of an item is said to be replaced by another only if by giving the same amount of satisfaction to its consumer.

Hence, The MRS concept tells about the association between the taking in of two goods or resources if consumers are said to make rational decisions.

Hence, the option that satisfy the above is option B. Therefore, Using the image attached. The option that shows the marginal rate of substitution is option b.

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