The marginal rate of technical substitution equals the ratio of the _____.
A)total product of capital and labor
B)marginal products of the inputs
C)marginal cost of both inputs
D)amount of capital employed to the amount of labor employed

Question

Quizplus · Accepted Answer

The marginal rate of technical substitution (MRTS) represents the rate at which one input can be substituted for another while maintaining a constant level of output. It is calculated as the ratio between the marginal products of the two inputs, i.e., how much additional output is produced by using one more unit of capital or labour while holding the other input constant.

The Marginal Rate of Technical Substitution Equals the Ratio of the _____