-In the figure above, the marginal rate of substitution (MRS) at point A is equal to ________ pounds of pickles per pound of olives.
A) 8
B) 6
C) 1 1/3
D) 2

Question

-In the figure above, the marginal rate of substitution (MRS) at point A is equal to ________ pounds of pickles per pound of olives.
A) 8 
B) 6 
C) 1 1/3 
D) 2

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility. If the MRS at point A is 1 1/3, it means the consumer is willing to give up 1 1/3 pounds of pickles for each additional pound of olives.

-In the Figure Above, the Marginal Rate of Substitution (MRS)