The Rate at Which a Firm Is Able to Substitute

question 320

Multiple Choice

The rate at which a firm is able to substitute one input for another while keeping the level of output constant is called the

• A)opportunity cost of inputs.
• B)marginal rate of technical substitution.
• C)input trade-off rate.
• D)isoquant substitution rate.

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Definitions:

Terminate

To bring something to an end or conclude its operation.

Agency Relationship

A legal relationship in which one party, the agent, acts on behalf of another party, the principal, with the principal's consent.

Right

A legal, moral, or social entitlement to have or obtain something or to act in a certain way.

Respondeat Superior

A legal doctrine holding an employer or principal responsible for the actions of their employees or agents performed within the course of their employment or agency.