The marginal rate of technical substitution is measured by
A) the relative input prices.
B) the slope of the isocost line.
C) the slope of the isoquant.
D) the ratio of the product's price to the product's cost of production.
C
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A depository institution's profit is derived from the difference between:
a. the interest rate it receives on loans and the rate it receives on investments in government securities. b. the interest rate it pays on deposits and the rate it receives on loans. c. its primary deposit and its derivative deposit. d. its assets and its liabilities. e. the interest rate it receives on domestic loans and the rate it receives on Eurodollar loans.
The implicit cost of capital is:
a. the expense associated with leasing machines. b. the expense associated with buying machines. c. the opportunity cost of capital used by a business d. irrelevant for determining economic profit.