Economy, asked by Madhushri860, 1 year ago

Shape of isoquant curve when inputs are perfect substitutes

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Answered by SuperstarPiyush

Marginal rate of technical substitutionwhen the inputs are perfect substitutes. The isoquants of a production function for which the inputs are perfect substitutes are straight lines, so the MRTS is constant, equal to the slope of the lines, independent of z1 and z2.

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