The Marginal Rate of Technical Substitution (RTS)of Labor for Capital

question 12

Multiple Choice

The marginal rate of technical substitution (RTS) of labor for capital measures:

• A)the amount by which capital input can be reduced while holding quantity produced constant when one more unit of labor is used.
• B)the amount by which labor input can be reduced while holding quantity produced constant when one more unit of capital is used.
• C)the ratio of total labor to total capital.
• D)the ratio of total capital to total labor.

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