Question

s MRS= -P1/P2 or is MRS= -Mux/MUy

Answer 1

[AI-generated answer — Bot GPT 3.5]

The correct formula for the marginal rate of substitution (MRS) is:

MRS = -MUx/MUy

Where MUx is the marginal utility of good x and MUy is the marginal utility of good y.