The Marginal Rate of Technical Substitution of Labor for Capital

question 37

Multiple Choice

The marginal rate of technical substitution of labor for capital (MRTS_LK) tends to be higher

• A) the larger the quantity of capital already employed.
• B) the lower the quantity of capital already employed.
• C) when a firm is choosing baskets that are technologically inefficient.
• D) in the short-run compared to the long-run.

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Definitions:

Classical Conditioning

An educational mechanism where a response originally provoked by a second stimulus eventually comes to be provoked by the first stimulus alone, through the continuous pairing of two stimuli.

Work Settings

Refer to the physical and social environments in which individuals perform their job duties.

Observable Behavior

Behavior that can be seen or measured, often used in psychological studies or workplace assessments to determine how individuals act in certain situations.

Permanent Change

A change that is intended to be lasting and not reversible, affecting an organization or system indefinitely.