The marginal rate of technical substitution of labor for capital measures
a. the amount by which capital input can be reduced while holding quantity produced constant when one more unit of labor is used.
b. the amount by which labor input can be reduced while holding quantity produced constant when one more unit of capital is used.
c. the ratio of total labor to total capital.
d. the ratio of total capital to total labor.
a
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When countries try to ban child labor,
A) most children start to attend school. B) family poverty decreases. C) child labor often goes underground, with children working in the informal economy, family enterprises and remote areas. D) GDP increases.
In the perfectly competitive model, all firms are assumed to be producing: a. products that are heavily advertised. b. differentiated products
c. identical products. d. complementary products.