On an isoquant, the MRTS is defined as A) $\left| \frac { \Delta \mathrm { K } } { \Delta \mathrm { L } } \right|$ B)MP_K/MP_Lat the relevant point on the isoquant C)MP_L * MP_K D)MP + MP_L

Question

Quizplus · Accepted Answer

The marginal rate of technical substitution (MRTS) is defined as the absolute value of the slope of the isoquant. The slope of the isoquant is equal to the ratio of the marginal product of capital (MPK) to the marginal product of labor (MPL). Therefore, the MRTS is equal to MPK/MPL.

On an Isoquant, the MRTS Is Defined as A) ∣ΔKΔL∣\left| \frac { \Delta \mathrm { K } } { \Delta \mathrm { L } } \right|​ΔLΔK​​

On an Isoquant, the MRTS Is Defined as
A) $\left| \frac { \Delta \mathrm { K } } { \Delta \mathrm { L } } \right|$