Marginal rates of technical substitution (MRTS)represent
A)the optimum combinations of inputs.
B)cost-minimizing combinations of inputs.
C)the degree to which one input can replace another without output changing.
D)All of the above

Question

Quizplus · Accepted Answer

Marginal rates of technical substitution (MRTS) represent the degree to which one input can replace another without changing the output. It does not necessarily represent the optimal or cost-minimizing combination of inputs. Therefore, the best choice is C.

Marginal Rates of Technical Substitution (MRTS)represent