Question

Formula for marginal rate of technical substitution

Answer 1

The marginal rate of technical substitution (MRTS) can be defined as, keeping constant the total output, how much input 1 have to decrease if input 2 increases by one extra unit. In other words, it shows the relation between inputs, and the trade-offs amongst them, without changing the level of total output.
Formula marginal rate of technical substitution: MRTS^K/L= DL/DK= MPl/MPk