The marginal rate of technical substitution shows
A)how many machines can be replaced by computers, keeping output constant.
B)how many computers are needed to replace workers so that output can increase.
C)the rate at which technology advances change marginal productivity.
D)how many workers can do the job of one computer, keeping output constant.

Question

Quizplus · Accepted Answer

The marginal rate of technical substitution (MRTS) shows how many units of one input can be replaced by one unit of another input while keeping the level of output constant. In this case, it is referring to the substitution of workers with computers. Therefore, the correct answer is D, which states how many workers can do the job of one computer while keeping output constant.

The Marginal Rate of Technical Substitution Shows