|
|
Marginal rate of substitution |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Marginal rate of substitutionIn a production function or a utility function, the ratio at which one argument (input) substitutes for another along an isoquant or indifference curve.Similar MatchesNo SubstitutionNo SubstitutionWithin the text on a proxy card are the words: "The shareholder appoints certain people (collectively, the proxy committee) with full power of substitution to vote the shares." If the security holder strikes out this phrase, the proxy cannot be voted if there is a change in the designated proxy committee. Constant elasticity of substitution functionConstant elasticity of substitution functionSee CES function Substitution swapSubstitution swapA swap in which a money manager exchanges one bond for another bond that is similar in terms of coupon, maturity, and credit quality, but that offers a higher yield. Same day substitutionSame day substitutionOffsetting changes in a margin account during the day that result in no overall change in the balance of the account. Elasticity of substitutionElasticity of substitutionThe elasticity of the ratio of two inputs to a production (or utility) function with respect to the ratio of their marginal products (or utilities). With competitive demands, this is also the elasticity with respect to their price ratio. For example, with factors L,K and factor prices w,r, the elasticity of substitution of a production function F(K,L) is s = (wL/rK)d(K/L)/d(w/r). Further SuggestionsSubstitution effectImport substitution Asset substitution Import substitution development strategy |
|
|
|