The Marginal Rate of Technical Substitution Is the Slope of the Isoquant

question 23

True/False

The marginal rate of technical substitution is the slope of the isoquant line.

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Definitions:

Total Utility

The total satisfaction a consumer receives from consuming a particular quantity of a good or service.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at specific prices.

Purchase More

The action of buying an increased quantity of goods or services than previously acquired.

Marginal Utility

The additional contentment a customer derives by consuming one more unit of a product or service.