An Approach to the Marginal Rate of Substitution in Economics and Data Envelopment Analysis

After introducing the concept of utility function and its mathematical properties, the concept of marginal cost and the method of measuring it in Cobb-Douglas is presented. Then the authors discuss how marginal cost should be calculated in DEA. Surveying the problems of calculating the MRS, the authors suggest a number of solutions to settle this issue. Lastly, by using the mentioned solution, the authors classify inputs in a DEA model

کلیدواژه ها:

Marginal rate ، utility function ، marginal cost ، trade-offs ، MRS