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:

Mean

The average value of a set of numbers, calculated by dividing the sum of all values by the number of values.

Standard Normal Deviate

Another term for Z-score, highlighting its role in standard normal distribution.

Standard Deviation

Standard deviation is a measure used in statistics to quantify the amount of variation or dispersion of a set of values.

Normal Distribution

A symmetrical, bell-shaped distribution of data where most of the observations cluster around the central peak and the probabilities of values taper off equally in both directions from the center.