Refer to the Following

question 63

Multiple Choice

Refer to the following:

The price of labor is $3 per unit.
-What is the marginal rate of technical substitution at point B?

• A) 0.6
• B) 0.75
• C) 1
• D) 1.7

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Definitions:

Tax Revenue

The income that is collected by governments through taxation, which supports public spending and services.

Government

The organization, or system by which a community or nation is governed, responsible for creating and enforcing laws.

Consumer Surplus

The offset between what customers are willing and able to pay for a service or product and what they actually expend.

Consumer Surplus

The distinction between the ideal spending amount of consumers on a good or service and their actual expenditure.