if two inputs are perfect substitutes, the MRTS IS;
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Explanation:
if two inputs are perfect substitutes, the MRTS IS;
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Explanation:
The MRTS is equal to the slope of isoquants. ... When considering different substitutes inputs, the slope will be different and the MRTS can be defined as a fraction, such as 1/2 ,1/3, and so on. For perfect substitutes, the MRTS will remain constant.
It equals the change in capital to change in labor which in turn equals the ratio of marginal product of labor to marginal product of capital. MRTS equals the slope of an isoquant.
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