MicroeconomicsAddison-Wesley, 1994 - 655 ˹éÒ |
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˹éÒ 187
... rate of substitution is low . The person is willing to give up only a small amount of good y and must be compensated with a large amount of good x to remain indifferent . Let's work out the marginal rate of substitution in two cases ...
... rate of substitution is low . The person is willing to give up only a small amount of good y and must be compensated with a large amount of good x to remain indifferent . Let's work out the marginal rate of substitution in two cases ...
˹éÒ 264
... rate of substitution of labor for capital - which is the ratio of the fall in capital ( -AK ) to the rise in labor ( AL ) -is 2. Switching from method b to method c involves cutting capital by 1 machine and raising labor by 2 workers ...
... rate of substitution of labor for capital - which is the ratio of the fall in capital ( -AK ) to the rise in labor ( AL ) -is 2. Switching from method b to method c involves cutting capital by 1 machine and raising labor by 2 workers ...
˹éÒ 266
... Rate of Substitution Capital ( machines per day ) 5 3 2 MRS = 2 b MRS = 1/2 which equals 12. Thus at point b , the marginal rate of substitution of labor for capital is 12 . You can now see that the law of diminishing mar- ginal rate of ...
... Rate of Substitution Capital ( machines per day ) 5 3 2 MRS = 2 b MRS = 1/2 which equals 12. Thus at point b , the marginal rate of substitution of labor for capital is 12 . You can now see that the law of diminishing mar- ginal rate of ...
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