Economy, asked by premchaudhary703355, 3 months ago

if two inputs are perfect substitutes, the MRTS IS;​

Answers

Answered by varundharane
0

Explanation:

if two inputs are perfect substitutes, the MRTS IS;

Answered by ankitha7777
5

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.

Similar questions
Math, 10 months ago