Which of the following formulas represents the marginal rate of technical substitution of labor for capital? A) MP_K/MP_L B) -∆L/∆K C) ∆K/∆L D) MP_L/MP_K

Question

Quizplus · Accepted Answer

The formula for calculating the marginal rate of technical substitution of labor for capital is given by the ratio of the marginal product of labor to the marginal product of capital, i.e., MP_L/MP_K. Therefore, the correct choice is D. Option A is incorrect as it does not correspond to the formula for marginal rate of technical substitution. Option B represents the slope of the isoquant curve, not the marginal rate of technical substitution. Option C is incorrect as it represents the inverse of the marginal rate of technical substitution.

Which of the Following Formulas Represents the Marginal Rate of Technical