The

marginal rate of substitution of the jth throughput to the kth throughput at the frontier point [z.sub.o] is defined as follows:

The

marginal rate of substitution between any two factors diminishes as one factor increases.

The

marginal rate of substitution can be interpreted as the ratio of the marginal utilities (as some economists continue to do for ease of exposition), but it does not need to be interpreted that way.

Secondly, operators will choose its investment either in equipment or in base stations to keep a throughput speed, so that the technical

marginal rate of substitution can equal the ratio of the marginal costs.

1) tax-evasion becomes rational from taxpayer's point of view in all cases in which the

marginal rate of substitution of consumption with respect to labor is less (as modulus) than real wage rate for the time unit spent on labor after taxation,

If the

marginal rate of substitution of [c.sup.0]([i.sup.*]) for [c.sup.1]([i.sup.*]) increases, then the number of markets, where a shopper uses credit, [i.sup.*], increases and a shopper purchases a larger variety of goods with credit.

any one individual's

marginal rate of substitution, but rather on

Firms produce based on the domestic relative price (or the marginal rate of transformation), which is greater than the world relative price (or the

marginal rate of substitution in consumption).

Across sectors, the

marginal rate of substitution is

By using an expression which is currently employed in the literature in a related context, we can summarise the above interpretation of the

marginal rate of substitution by saying that [MRS.sup.i.sub.21]([x.sub.i]) represents consumer i's 'reservation price' of commodity 1 in terms of commodity 2, when i's consumption is [x.sub.i].

It is straightforward to show that the

marginal rate of substitution between consumption and labor is given by

If [I.sub.0] and [I.sub.1] are considered to be two different "commodities," then the

marginal rate of substitution (MRS) of [I.sub.0] for [I.sub.1] is