If the MRTS is constant:
A)the inputs are perfect substitutes.
B)we are dealing with a fixed- proportions production function.
C)the inputs are perfect complements.
D)the production function exhibits constant returns to scale.

Question

Quizplus · Accepted Answer

If the MRTS (marginal rate of technical substitution) is constant, it indicates that the inputs are perfect substitutes. This means that one input can be completely substituted for another without affecting the overall production process.

If the MRTS Is Constant