In a competitive general equilibrium, MRSX,Y = PX/PY.

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In a competitive general equilibrium, the marginal rate of substitution between two goods X and Y for a consumer must be equal to the ratio of their prices (PX/PY) for the market to clear. This is the condition for the consumer to maximize their utility given their budget constraint. Therefore, MRSX,Y = PX/PY in a competitive general equilibrium. In a competitive general equilibrium, the marginal rate of substitution between two goods X and Y is equal to their price ratio. Therefore, MRSX,Y = PX/PY.

In a Competitive General Equilibrium, MRSX,Y = PX/PY