Explain the concept of marginal rate of substitution and marginal rate of transformation. And show these concepts graphically?

Md Ariful Islam

0 like 0 dislike
1 views
Share with your friends

1 Answers

Md Ariful Islam

Call
Marginal rate of substitution is the slope of the indifference curve. It is the rate at which the consumer is willing to give up certain units of a good in order to get an additional unit of another good. it is equal to the ratio of the Marginal Utilities of the 2 goods. Marginal rate of transformation is the slope of the production possibiltiy frontier. it is the rate at which the producer is willing to give up the production of certain units of a good in order to increase the prpduction of the other good by 1 unit (by shifting the inputs more towards the production of the last good). it is equal to the ratio of the marginal costs of the 2 goods.
0 like 0 dislike
1 views
Talk Doctor Online in Bissoy App
1- Explain in detail the economic term Elasticity of demand? 2- Explain in detail the Diminishing marginal rate of substitution?

1. Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to...

1 Answers 1 views
explain the concept of marginal rate of substitution and marginal rate of transformation. and show these concept graphically?

Marginal rate of substitution is the slope of the indifference curve. It is the rate at which the consumer is willing to give up certain units of a good in...

1 Answers 1 views
At L=4, K=4, the marginal product of labour is 2 and the marginal product of capital is 3. What is the marginal rate f technical substitution?

At L=4, K=4 MPl = 2, MPk = 3. Marginal Rate of Technical Substitution (MRTS) is the amount by which the quantity of one input has to be reduced when...

1 Answers 1 views
Explain the concept of value of marginal product of labour. How is the labour demand curve related to value of marginal product of labour curve?

The marginal product of labor is expenses by unit, the value of the final product, which increases with each additional unit of labor used. When the marginal costs are equal...

1 Answers 1 views
Identify a set of concepts in Managerial Economics that you found most interesting and useful. Show why these sets of concepts impressed you with a case study

Normative view based on managerial states that the administrative decisions tend to be regards to life practices and experiences. The have systematic way to study promotion, product design, forecasting as...

1 Answers 1 views
Compare and contrast marginal rate of substitution and marginal rate technical substitution.

Marginal rate of substitution1.MRS is the rate at which a consumer is willing to trade one good for another to maintain a constant level of utility.2.MRS is the slope of...

1 Answers 1 views
At L=4, k=4, the marginal product of labor is 2 and the marginal product of capital is 3. what is the marginal rate of substitution?

At L=4, K=4 MPl = 2, MPk = 3. Marginal Rate of Technical Substitution (MRTS) is the amount by which the quantity of one input has to be reduced when...

1 Answers 1 views
1). Examine the role of accounting concepts in the preparation of financial statements. Do you find any of the accounting concepts conflicting with each other? Give examples.

Some accounting concepts conflict with each other. These are:Accruals and prudenceThe accruals concept requires future income (e.g. in relation to credit sales) to be accrued. The prudence concept dictates that...

1 Answers 1 views
According to functionalism, what are manifest and latent functions (define these concepts)? Give examples of a manifest and a latent function in schools (apply the concepts and use your own examples

The manifest functions of school edification consist of providing learners with a knowledgeable context, conveying real-world expertise, and handing over the community's norms and values. Latent functions take account of...

1 Answers 1 views
Define the concept by using your own words. Give an appropriate example from your past where you have observed this concept or the lack of this concept

a) Concepts are defined as abstract ideas or general notions that occur in the mind, in speech, or in thought. They are understood to be the fundamental building blocks of...

1 Answers 1 views
X