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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. computers and clerks
d. keyboards and computers

Which of the following is the best example of two inputs that would exhibit a constant marginal rate of technical substitution?

a. trucks and truck drivers
b. natural gas and oil
c. personal computers and clerical workers
d company employed computer programmers and temporary supplemental computer programmers

Solution Preview

Answer 1: Computer and Clerks
This is the answer because they represent substitutable inputs in production. A company can either hire more clerks to do a job or can buy more computers to do the same job. As quantity of one decreases, it ...

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The solution provides excellent answer to the multiple choice questions below below.

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