The marginal rate of technical substitution (MRTS) along an isoquant:
A) is equal to the price ratio at all points along an isoquant.
B) is equal to the ratio of the marginal utilities of the two goods.
C) is equal to the ratio of the marginal products of the two inputs.
D) remains constant as we alter the combinations of the two inputs.
C
Economics
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The table above shows Tom's total utility from milkshakes and sodas. What is the marginal utility of the eighth soda?
A) 32 units B) 20 units C) 10 units D) 8 units
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The equation for a budget line for goods X and Y, with Px being the price of X, Py being the price of Y, and B being the budget, can be written as:
a. PxX + PyY = B. b. PxX + PyY = 1 / B. c. PxX = B + PyY. d. PxX / PyY = 1 ? B.
Economics