The Marginal Rate of Technical Substitution of Labor for Capital

question 27

Multiple Choice

The marginal rate of technical substitution of labor for capital (MRTS_LK) measures

• A) the amount of capital that can replace a unit of labor without affecting the firm's output.
• B) the additional output attributable to a 1% increase in labor and capital usage.
• C) the rate at which the firm can exchange labor for capital in the input markets.
• D) the slope of the firm's expansion path.