The Marginal Rate of Technical Substitution Is

question 206

Multiple Choice

The marginal rate of technical substitution is

• A) the rate at which a firm is able to substitute one input for another, while keeping total cost constant.
• B) the rate at which a firm is able to substitute one input for another, while keeping the level of output constant.
• C) the rate at which a firm is able to institute positive technological changes to its production process.
• D) the rate at which a firm is able to increase its output by replacing labour with technology.

---

Definitions:

Special Order

A customer request for goods or services that are not normally offered or stocked by a business.