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The Marginal Rate of Technical Substitution of Labor for Capital

Question 45

Multiple Choice

The marginal rate of technical substitution of labor for capital (MRTSLK) measures


A) the amount of capital that can replace a unit of labor without affecting the firm's output.
B) the additional output attributable to a 1% increase in labor and capital usage.
C) the rate at which the firm can exchange labor for capital in the input markets.
D) the slope of the firm's expansion path.

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