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The Marginal Rate of Product Substitution (MRPS) Tells a Manager

Question 4

Multiple Choice

The Marginal Rate of Product Substitution (MRPS) tells a manager:


A) the amount by which one output must be reduced when another output is increased for a given set of resources
B) the amount by which the opportunity cost of one product will decline with a given set of resources
C) the amount of output possible for all given sets of resources available
D) none of the other three answers

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