Refer to the Following Graph

question 67

Multiple Choice

Refer to the following graph.The price of labor is $3 per unit: What is the marginal rate of technical substitution at point B?

• A)0.6
• B)0.75
• C)1
• D)1.7

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Definitions:

Tokyo Stock Exchange

A major stock market exchange in Japan, serving as a hub for the trading of stocks, bonds, and other securities.

Financial Assets

Stocks and bonds. More generally a document giving its owner a claim to certain future cash flows. Stocks base that claim on ownership (equity), while bonds base it on debt. Also called a security.

Future Cash Flows

Projected financial gains or losses for a specific period in the future.

Financial Advisors

Professionals who help individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes, and retirement.