Author Question: The marginal rate of substitution is: a. the total amount a consumer is willing to trade to get ... (Read 60 times)

awywial · **on:** Jun 30, 2018

The marginal rate of substitution is:
a. the total amount a consumer is willing to trade to get another good.
b. the rate at which the consumer is willing to trade one good to gain one more unit of another good.
c. is reflected by the slope of the indifference curve.
d. characterized by both b. and c.

Question 2

If a particular factor has a specific use, its transfer earning is very high.
a. True
b. False
Indicate whether the statement is true or false