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Domanda American English Risposta American English
pareto efficiency
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an economic state where resources cannot be reallocated to make one individual better off without making at least one individual worse off
while MRS focuses on the consumer demand side
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MRT focuses on the manufacturing production side
the law of diminishing marginal rates of substitution
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usually marginal substitution is diminishing
MRS
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is the amount of a good that a consumder is willing to consume compared to another good as long as the new good is equally satisfying
marginal utility for subsitution is zero when
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when somebody is indifferent to substituting
diminishing marginal rate of substitution
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a decline in MRTS along an isoquant for producing the same level of output
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