The formula to calculate the Marginal Rate of Substitution (MRS) is:
\[ \text{MRS} = \frac{\text{MUx}}{\text{MUy}} \]
Where:
A marginal rate of substitution is a measure of the amount of a product that a consumer is willing to purchase or consume based on the consumption of another product. It essentially measures the effect the consumption of one good has on the consumption of a separate but related good.
Let's assume the following:
Step 1: Calculate the Marginal Rate of Substitution (MRS):
\[ \text{MRS} = \frac{0.56}{0.45} \approx 1.24444 \]
Therefore, the Marginal Rate of Substitution is approximately 1.24444.
