The marginal rate of technical substitution always equals
A)the slope of the total product curve.
B)the ratio of the marginal products of inputs.
C)the change in output due to a change in the amount of one input.
D)the distance between two isoquants.

Question

Quizplus · Accepted Answer

The marginal rate of technical substitution (MRTS) is the rate at which one input can be substituted for another without changing the total output. It is equal to the ratio of the marginal products of the two inputs. Therefore, the best answer is B, the ratio of the marginal products of inputs.

The Marginal Rate of Technical Substitution Always Equals