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Nostrana [21]
3 years ago
12

Why Marginal Rate of Substitution must to equal the ratio of price of 2 given goods for the consumer to achieve maximum satisfac

tion?
Social Studies
1 answer:
natta225 [31]3 years ago
3 0
<span>The Marginal Rate of Substitution refers to the rate the consumer is willing to trade for another good to maintain the level of satisfaction. It is described by ratio of prices. Maximum satisfaction is achieved when trade offs between two goods are equal. </span>
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