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

Question

Quizplus · Accepted Answer

MRTS (Marginal Rate of Technical Substitution) is defined as the rate at which one input can be substituted for another input without changing the level of output. At any point on the isoquant, MRTS is equal to the slope of the isoquant, which is given by MPK/MPL. Therefore, the correct answer is B.

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) $\left| \frac { \Delta \mathrm { K } } { \Delta \mathrm { L } } \right|$