The rate at which the consumer is willing to substitute one good for another without changing the level of satisfaction is known as :
Marginal rate of substitution
Marginal rate of technical substitution
Diminishing marginal utility
Equi-marginal utility
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC CAPF – 2014
– Marginal Rate of Technical Substitution (MRTS): Rate at which a firm substitutes one input for another to maintain constant output.
– Diminishing Marginal Utility: The concept that the additional utility gained from consuming one more unit of a good decreases as consumption increases.
– Equi-marginal utility: Condition for consumer equilibrium where the ratio of marginal utility to price is equal for all goods.