The Marginal Rate of Technical Substitution Is

question 305

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 labor with technology.

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Definitions:

Keiretsu

A network of interlinked Japanese companies, often bound by cross-shareholdings, collaborating closely for mutual benefit.

Kanban

A scheduling system for lean manufacturing and just-in-time manufacturing that signals the need to move materials within a production facility or to move materials from an outside supplier into the production facility.

Meishi

The Japanese term for business cards, which play a significant role in business and social etiquette in Japan.

Zaibatsu

A large Japanese business conglomerate, typically family-owned, existing before World War II and involved in multiple industries.