Refer to the following:

The price of labor is $3 per unit.
-What is the marginal rate of technical substitution at point B?
A) 0.6
B) 0.75
C) 1
D) 1.7

Question

Refer to the following:
  
The price of labor is $3 per unit.
-What is the marginal rate of technical substitution at point B?
A) 0.6 
B) 0.75 
C) 1 
D) 1.7

Quizplus · Accepted Answer

The marginal rate of technical substitution (MRTS) is the rate at which one input can be substituted for another while keeping output constant. At point B, the MRTS is 0.6, which means that 0.6 units of capital can be substituted for 1 unit of labor while keeping output constant.

Refer to the Following