The marginal rate of technical substitution of labour for capital measures:
A) The amount by which capital input can be reduced while holding quantity produced constant when one more unit of labour is used.
B) The amount by which labour input can be reduced while holding quantity produced constant when one more unit of capital is used.
C) The ratio of total labour to total capital.
D) The ratio of total capital to total labour.
Correct Answer:
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Q10: A production isoquant is a function that
Q11: Any point where the isocost line cuts
Q12: The point of least-cost input occurs where
Q13: A firm's rate of technical substitution is
Q14: The production isoquant line measures the different
Q16: A firm's isoquant shows
A) The amount of
Q17: Assume that capital is represented by the
Q18: If the ratio of land to labour
Q19: Production isoquants can cross each other.
Q20: A technical innovation in a firm would:
A)
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