Which of the following is not true of the marginal rate of substitution?
A) It is the rate at which we substitute good X for good Y in consumption.
B) It will be equal to the price ratio when the consumer maximises utility.
C) It is the ratio of the total utility of X to the total utility of Y.
D) It is the rate at which we substitute good X for good Y in production.
E) It is the ratio of the marginal utility of X to the marginal utility of Y.
Correct Answer:
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