The Marginal Rate of Technical Substitution Is the Ratio of

question 236

Multiple Choice

The marginal rate of technical substitution is the ratio of

• A) the marginal product of labor to the marginal product of capital.
• B) capital to labor.
• C) capital to the price of capital.
• D) labor to the price of labor.

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Definitions:

Alternative-Choice Close

Gives the prospect a choice between two alternatives.

T-Account Close

A close that is based on the process that people use when they make a decision by weighing the pros against the cons.

Competitor's Product

A product that is offered by one company that serves as an alternative or rival to another company's product in the market.

Standing-Room-Only Close

A close whereby a salesperson suggests that if a prospect does not act now he or she may not be able to buy in the future, thus motivating the prospect to act immediately.