1. The marginal rate of technical substitution between two inputs:a.shows the efficient combination of inputsb.shows the rate at which one input can be traded for another, holding output constantC.increases as we move down an isoquantd.shows the rate at which outout can be increased by using more of both inputse.shows the rate at which output decreases when using less of one of the inputs

MRTS is the amount by which one input can be substituted by another for getting the same output.

1. The marginal rate of technical substitution between two inputs: shows the efficient combination of inputs b. shows the rate at which one input can be traded for another, holding outout constant C. increases as we move down an isoquant shows the rate at which output can be increased by using more of both inputs e. shows the rate at which output decreases when using less of one of the inputs

1. The marginal rate of technical substitution between two inputs: shows the efficient combination of inputs b. shows the rate at which one input can be traded for another, holding outout constant C. increases as we move down an isoquant shows the rate at which output can be increased by using more of both inputs e. shows the rate at which output decreases when using less of one of the inputs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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