Which of the Following Is the Best Example of Two

question 25

Multiple Choice

Which of the following is the best example of two inputs that would exhibit a constant marginal rate of technical substitution?

• A)trucks and truck drivers
• B)natural gas and oil
• C)personal computers and clerical workers
• D)company-employed computer programmers and temporary supplemental computer programmers

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Definitions:

Marginal Cost

The financial commitment needed for the creation of an additional unit of a product or service.

Fixed Cost

Expenses that do not vary with the level of production or sales, such as rent, salaries, or insurance costs.

Lawn-mowing

The process of cutting the grass in a garden or yard to maintain a neat and orderly appearance.

Perfectly Competitive

A market structure characterized by many buyers and sellers, where no single entity has a significant impact on prices.