Suppose That Labor Is Measured on the Horizontal Axis and Capital

question 19

Multiple Choice

Suppose that labor is measured on the horizontal axis and capital is measured on the vertical axis.At an interior solution:

• A) MRTS_LK = P_L/P_K.
• B) MRTS_LK = - P_L/P_K.
• C) MRST_LK = P_K/P_L.
• D) MRTA_LK = - P_K/P_L.

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