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I would like to define MRTS and the marginal rate of technical substitution (MRTS) is an economic theory that illustrates the rate at which one factor must decrease so that the same level of productivity can be maintained when another factor is increased.Marginal rate of technical substitution (MRTS) is the rate at which a firm can substitute capital with labor. It equals the change in capital to change in labor which in turn equals the ratio of marginal product of labor to marginal product of capital. MRTS equals the slope of an isoquan. So keep learning keep growing.
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Question : The indifference curve's slope is calculated using:
Option 1: Marginal Rate of Substitution
Option 2: Marginal Opportunity Cost
Option 3: Marginal Rate of Transformation
Option 4: None of these
Question : A consumer will not be in equilibrium when according to the indifference curve and price line.
Option 1: The price of retroactive items and the marginal utility ratio is the same.
Option 2: The ratio of marginal utilities of the two goods is equal to the ratio of their respective prices.
Option 3: The prices of the two items are equal, as is the marginal rate of substitution.
Option 4: Substitution's marginal rate is declining.
Question : If a consumer is in equilibrium, the consumer's marginal rate of substitution (MRS) must be equal to:
Option 1: The price of X.
Option 2: The price of Y.
Option 3: The ratio of marginal utilities.
Option 4: The ratio of prices.
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