A cow will produce 8500 lbs.of milk if fed either 5000 lbs.of hay and 6200 lbs.of grain or 5600 lbs.of hay and 5400 lbs.of grain.Over this range,the marginal rate of technical substitution between hay and grain is

Question

Quizplus · Accepted Answer

The marginal rate of technical substitution (MRTS) is calculated as the change in the quantity of one input divided by the change in the quantity of another input, while keeping output constant. Here, the change in hay is 5600 - 5000 = 600 lbs, and the change in grain is 5400 - 6200 = -800 lbs. MRTS = -600 / -800 = 0.75.

A Cow Will Produce 8500 Lbs