January 8, 2015 in Other with: fish, life, pescatarian. I was originally intending to begin this post with the phrase, âI have a confession to makeâ¦â. But then I realized that the use of that phrase makes it sound like I have done something bad or wrong.
The marginal rate of return is a term that is used to identify the rate of return that is generated if a single unit is added to the current process, in comparison with choosing to maintain the status quo or taking some other type of action that exerts some effect on the returns realized.
In economics, the marginal rate of substitution is the rate at which a consumer is ready to give up one good in exchange for another good while maintaining the same level of utility. At equilibrium consumption levels (assuming no externalities), marginal rates of substitution are identical.or example, if the MRS xy = 2, the consumer will give up 2 units of Y to obtain 1 additional unit of X. As one moves down a (standardly convex) indifference curve, the marginal rate of substitution decreases (as measured by the absolute value of the slope of the indifference curve, which decreases).