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**What do you mean by Marginal Rate of Substitution?**

Let us learn about the definition of Marginal Rate of Substitution from the experts of **marginal rate of substitution assignment help**. The measure of the utility of any useful commodity is given by Marginal Rate of Substitution. This term and the slope related to it are used to compare the value of two goods.This gives you an idea about the usefulness of the product according to the preference of the consumers.

The numerical value of the slope of the indifference curve is called the marginal rate of substitution. The negative sign is not generally used when one is evaluating the marginal rate of substitution. As derivatives are used, therefore this presents to us an approximate value.

**Comparison between utility and marginal rate of substitution**

Utility of the ordinals can be measured by using the concept of marginal Rate o Substitution. It is given more preference over the concept of utility because it is more elastic and hence is more realistic and scientific.

The goods are not separately considered, but marginal rate of substitution takes into consideration the other related goods too, which plays a detrimental factor in affecting the preference of the customers. Marginal Rate of Substitution is not an absolute concept, but it is a relative concept. As it is not based on any assumption, therefore the chances of error get eliminated.

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