The Marginal Rate of Technical Substitution Is Measured by

question 31

Multiple Choice

The marginal rate of technical substitution is measured by

• A)the slope of the isoquant.
• B)the relative input prices.
• C)the slope of the isocost line.
• D)the ratio of the product's price to the product's cost of production.

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Definitions:

Period End Liabilities

Period end liabilities are the obligations a company must pay at the end of an accounting period.

Period's Assets

Assets that are expected to be utilized or converted into cash within the timeframe of a single fiscal period.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to account for its decrease in value over time.

Accumulated Depreciation

Represents the total amount of a company's asset depreciation expense since the asset was acquired.