How can I calculate the Marginal Rate of Substitution?

You can easily calculate the marginal Substitution with the formula: MRSxy= change in Y/change in X. Here, it simply implies the indifference curve between the two.

What is MRT in Economics?

MTS stands for Marginal Rate of transformation. It helps the economists to check and verify the cost for producing one more unit of the product. In such a scenario, the opportunity cost can be represented according to the lost production of other goods.

Explain the difference between the marginal rate of transformation and the marginal rate of substitution?

When you talk about the marginal rate of substitution, it analyses how willing the customer is to replace one product with another. But, when it comes to the marginal rate of transformation, it analyses the amount of willingness of the manufacturer to reduce the production cost for other products.

What is the difference between MRS and MTRS?

So, the basic difference between the MRS and MTRS is that the MTRS is more about focusing on the producer equilibrium and MRS is all about the consumer equilibrium. When talking about MTRS, you need to maintain a give and take relationship to keep things constant.