If the quantity of good A is on the vertical axis and the quantity of good B is on the horizontal axis, the marginal rate of technical substitution of the corresponding isoquant line is the:

Question

Quizplus · Accepted Answer

The marginal rate of technical substitution (MRTS) is the rate at which one good can be substituted for another while keeping the level of output constant. It is calculated as the negative of the slope of the isoquant line. The slope of the isoquant line is equal to the marginal product of good B divided by the marginal product of good A. Therefore, the MRTS is equal to the negative of the marginal product of good B divided by the marginal product of good A.

If the Quantity of Good a Is on the Vertical