Purchase Solution

Marginal rate of technical substitution (MRTS)

Not what you're looking for?

Ask Custom Question

The rate at which one input X may be substituted for another input Y in a
production process, while total output remains constant, is:

a) the slope of the isoquant curve
b) the marginal rate of technical substitution (MRTS)
c) equal to MPx/MPy
d) all of the above
e) none of the above

Purchase this Solution
Solution Summary

Marginal rate of technical substitution (MRTS) is briefly summarized in this solution.

Solution Preview

By definition this is equal to the marginal rate of technical substitution (MRTS). The isoquant curve ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Marginal Rate of Technical Substitution

    (a) Find the marginal rate of technical substitution for the following production function: MRTS = -MPL/MPK¬ MPL = = = MPK = = = Now, MRTS = -MPL/MPK¬ = - / = -L-1.5/4K-1.5 = -K1.5/4L1.5 The expert finds the marginal rate

  • Diminishing Marginal Returns vs Tech Substitution

    Law of Diminishing marginal rate of technical substituiton The slope of an isoquant is called the marginal rate of technical substitution (MRTS).

  • law of diminishing marginal returns and the law of diminishi

    58962 Law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution Explain the difference between the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution?

  • Production Theory Functions

    (a) Sketch the isoquant diagram of this firm. (b) Derive the marginal rate of technical substitution between the two inputs. What is the relationship between the marginal rate of technical substitution and the isoquants drawn in subquestion (a).

  • Production Planning: Specialty Steel

    Marginal rate of technical substitution.

  • Economics

    128010 Economics Which of the following combination of inputs is most closely reflective of decreasing marginal rate of technical substitution (MRTS)? a. oil and natural gas b. sugar and high fructose corn syrup c.

  • optimal combination of capital and labor

    The optimal combination of labor and capital is determined by the marginal rate of technical substitution (MRTS).

  • Calculating profit maximizing output and elasticity

    (b) At the optimum solution in (a), what is the value of the marginal rate of technical substitution in production?

  • production function discussed

    Isoquants are downward sloping because the marginal rate of technical substitution usually diminishes as you move down along the isoquant.

View More Related Solutions