The rate at which a firm is able to substitute one input for another while keeping the level of output constant is called the
A)opportunity cost of inputs.
B)marginal rate of technical substitution.
C)input trade-off rate.
D)isoquant substitution rate.

Question

Quizplus · Accepted Answer

The rate at which a firm is able to substitute one input for another while keeping the level of output constant is referred to as the marginal rate of technical substitution (MRTS). Therefore, option B is the correct choice. A is incorrect because the opportunity cost of inputs refers to the cost of using one input in terms of forgoing the opportunity to use the other input. C is incorrect because input trade-off rate is not a commonly used term in economics. D is incorrect because there is no such thing as "isoquant substitution rate."

The Rate at Which a Firm Is Able to Substitute