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Why Does the Marginal Rate of Substitution Decline as More

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Why does the marginal rate of substitution decline as more of a good is consumed?


Definitions:

Total Product

The total quantity of output produced by a firm from a given quantity of inputs during a certain period of time.

Workers

Individuals engaged in some form of employment or labor, contributing their skills or effort in exchange for compensation.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while keeping other inputs constant.

Fourth Worker

An individual representing an additional unit of labor in the context of discussing labor inputs and productivity, often in economic analysis.

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