Ask Question
10 February, 07:38

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

+2
Answers (1)
  1. 10 February, 11:15
    0
    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.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Why Marginal Rate of Substitution must to equal the ratio of price of 2 given goods for the consumer to achieve maximum satisfaction? ...” in 📙 Social Studies if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers