Economics Marginal Utility Questions
The relationship between marginal rate of substitution (MRS) and marginal utility is that MRS measures the rate at which a consumer is willing to substitute one good for another, while marginal utility measures the additional satisfaction or utility gained from consuming one additional unit of a good. In other words, MRS is the ratio of the marginal utilities of two goods, indicating the willingness of a consumer to give up one good in exchange for another, based on the level of satisfaction derived from each good.