The Marginal Rate of Technical Substitution in Production Is Analogous

question 66

True/False

The marginal rate of technical substitution in production is analogous to the marginal rate of substitution for the consumer's optimization problem in that the slope of the consumer's indifference curve is the opposite of the ratios of the marginal utilities of the two goods, whereas the slope of the production isoquant is the opposite of the ratio of the marginal product of labor relative to the marginal product of capital.

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Definitions:

Qualitative

Pertaining to or concerning the quality or nature of something, often used in research to describe non-numerical data gathered through observation, interviews, and narratives.

Quantitative

Pertaining to or involving the measurement of quantity or amount. In research, it refers to methods that focus on numbers and statistical analysis.

Deduction

A logical process in which a conclusion follows necessarily from the set of premises, moving from general principle to a specific instance.

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