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The Marginal Rate of Technical Substitution of Labor for Capital

Question 32

Multiple Choice

The marginal rate of technical substitution of labor for capital measures


A) the amount by which capital input can be reduced while holding quantity produced constant when one more unit of labor is used.
B) the amount by which labor input can be reduced while holding quantity produced constant when one more unit of capital is used.
C) the ratio of total labor to total capital.
D) the ratio of total capital to total labor.

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