The $M R T S _ { L , K } =$____
A) $\frac { M P _ { K } } { M P _ { L } }$
B) $\frac { - \Delta L } { \Delta K }$
C) $\frac { M P _ { L } } { M P _ { K } }$
D) $\frac { - M P _ { K } } { M P _ { L } }$

Question

Quizplus · Accepted Answer

The marginal rate of technical substitution (MRTS) between two inputs L and K is the rate at which one input (K) can be reduced while increasing the other input (L) at a constant rate so as to keep the total output constant. Mathematically, MRTS is given by the ratio of marginal product of input L to the marginal product of input K (MPL/MPK). Therefore, the correct choice is C. The MRTS (marginal rate of technical substitution) measures the rate at which one input can be traded off for another without changing the level of output. It is given by the ratio of the marginal product of two inputs. In this case, we want the ratio of the marginal product of capital to the marginal product of labor. Thus, the correct answer is C: $\frac { M P _ { L } } { M P _ { K } }$.

The MRTSL,K=M R T S _ { L , K } =MRTSL,K​=

The $M R T S _ { L , K } =$