Refer to the Following Graph

question 87

Multiple Choice

Refer to the following graph.The price of capital r) is $20. At the optimal combination of inputs for producing 14,000 units of output,what is the marginal rate of technical substitution?

• A)2.5
• B)0.67
• C)1.5
• D)0.80
• E)impossible to tell from the graph

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if other players keep theirs unchanged.

Game Theory

The study of mathematical models of strategic interaction among rational decision-makers.

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A period characterized by rapid and profound technological advancements, significantly impacting industries and society.

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The organization and characteristics of a market, determining the level of competition and pricing power, such as monopolistic, oligopolistic, and competitive markets.