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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