QAEconomics › What is a diminishing marginal rate of substitution?
Q

What is a diminishing marginal rate of substitution?

A

The diminishing marginal rate of substitution means that a consumer is more likely to forgo a product (A) as another product (B) suits hisneeds in a better way. In other words, the more the consumer is exposed to A, the more they will substitute A for B.

2 years ago
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