The marginal rate of technical substitution represents the slope of?

Q: n production theory, diminishing rate of technical substitution(RTS) shows how one input is…

A: Production function depicts the technological relationship between the input and the output. The…

Q: Decreasing rate of marginal substitution between two inputs occur when the input being added replace…

A: MRTS or marginal rate of substitution refers to the rate at which one input is substituted for other…

Q: What is the marginal rate of substitution at point A? Interpret this value.

A: Formula used: MRSXY = dYdX = MUxMUy

Q: The production function is Q = 18K + 9L. Rent is $80 and wage is $40. Draw a graph of the isocost…

A: Q = 18K + 9L  Cost = rK + wL = 80K + 40L

Q: What is  marginal rate of technical substitution?

A: The substitution is the process of replacing one item with another item which will have the same…

Q: What is technical rate of substitution? Show it graphically

A: Substitution effect: It refers to the effect under which there is reduction in the sales of goods…

Q: Given a constant elasticity of substitution (CES) production function as follows: y = [a1x1ρ +…

A: the CES exhibits constant returns to scale It contains other production functions as special…

Q: Define marginal rate of substitution.

A: The marginal rate of substitution(MRS) is a very technical word in economics, defined as the…

Q: Find the marginal rate of technical substitution of the following production function: q = L +…

A: Marginal rate of technical substitution is the ratio of marginal product of labor and marginal…

Q: Why is the point of isoquant tangent to the isocost called the optimal combination?

A: An isoquant is a locus of points which shows different combinations of two inputs which can be used…

Q: Production of taxi rides (15%) GlobalTaxi runs taxi services around the globe. GlobalTaxi uses two…

A: Hi, thanks for the question. As per the guideline we are allowed to attempt the first question. If…

Q: The marginal rate of technical substitution means most likely that O Labor and capital cannot be…

A: Marginal rate of technical substitution is the slope of isoquant that shows combinations of inputs…

Q: Describe the concept of the marginal rate of technical substitution

A: The marginal rate of technical substitution (MRTS) is an economic concept that explains how fast one…

Q: Critically review the key characteristics of the Isoquants curve.

A: The Iso-product or Iso - quants curves represent the different combinations of two inputs to…

Q: 1

A: Isoquant curve is the possible of two combination of inputs which give same level of production .

Q: The equilibrium of the producer is found at that point where O MPL/MPK > MRTS O The slope of…

A: Producer is at equilibrium when the combination of price and output gives the maximum profit to him.

Q: If the economy uses inputs efficiently, then (pls select all that applies) Group of answer choices…

A: The marginal rate of technical substitution is the rate at which the utility of one input is…

Q: What is your marginal rate of substitution of $1 bills for $5 bills?

A: Definition :  Marginal Rate Substitution is the rate at which some amount of one commodity…

Q: The combinations of inputs that produce a given level of output are depicted by isoquants. In…

A: MRTS = MPL /MPK  MPL=  dQ/dL ie the first order partial differentiation with respect to L         =…

Q: Calculate your marginal rate of substitution as a function of B and C.   U(B,C)= B^(1/4)C^(3/4)

A: The marginal rate of substitution denotes the slope of the indifference curve and is defined as the…

Q: In a relationship among total, average and marginal products, where TP is maximized:

A: The Total product (TP) implies the sum total of output produced using each nit of variable factor.…

Q: With the help of a diagram, make a distinction between substitution effect and income effect on…

A: Income Effect versus Substitution Effect: An Overview  The income effect communicates the effect of…

Q: Discuss the marginal rate of substitution and its role in the production function.

A: In economics, there are different terms used to explain a specfiic economic concept based on market…

Q: Complete the following table by determining Lucia's marginal rate of substitution (MRS) between the…

A: The indifference curve shows the combination of two goods that gives equal satisfaction to the…

Q: Explain the fact that typical person employed in production worked 55 hours per week in 1900, 40…

A: The labor supply curve is backward bending which means it is positively sloped to a certain level of…

Q: What is the marginal rate of substitution of x for y when x = 16 and y = 54?

A: The marginal rate of substitution is considered as the slope of the Indifference curve that provides…

Q: What Is marginal rate of substitution?

A: Utility function in economics represents the consumer’s preferences for goods and services. It is…

Q: Decreasing rate of marginal substitution between two inputs occur when the input being added replace…

A: Marginal Rate of substitution is the slope of isoquant which states that how much change in good Y…

Q: There is no difference between the marginal rate of substitution and the ma Do you agree with this…

A: The MRSxy implies the number of units of Y which are given up to get one additional unit of x. On…

Q: The marginal rate of technical substitution is defined by: a. MRTS 2 = MP/P2 b. MRTS 2= MP,MP C.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Q(A) Use the following information to show the producers equilibrium under the isoquant/ isocost…

A: The producer's equilibrium refers to the point where the isoquant curve is tangent to the isocost…

Q: Problem 1 Technology a) The local cleaner launders white clothes using the production function q =…

A: Given; q=3B+G Marginal Product (MP) is the change in the output when an extra unit of the input is…

Q: Define and then derive the expression for the marginal rate of technical substitution.

A: Marginal rate of technical substitution (MRTS) measures the rate at which one factor must give up in…

Q: production function of this nature; AX1aX2b determine the Marginal Rate of Technical Substitution.

A: Marginal rate of technical substitution means the rate at which one factor is substitute by other…

Q: The Implicit Function Theorem and the Marginal Rate of Substitution. An important result from…

A: In math, all the more explicitly in multivariable analytics, the implicit function theorem is a…

Q: There is no difference between the law of diminishing marginal returns and the law of diminishing…

A: Answer: The given statement is false. Explanation: Law of diminishing marginal returns: When a…

Q: Suppose that the production function is ƒ(x1,x2) = (xĩ + x²)º, where a and b are positive constants.…

A: A production function ties the physical output of a production process to its physical inputs or…

Q: What is meant by the average physical product (APP) and marginal physical product (MPP) of labour?…

A: Average physical product is the quantity of output produced for one unit of variable input.…

Q: If two inputs are perfect substitutes a. The isoquant is a straight line and the MRTS is constant b.…

A: The answer is a. The isoquant is a straight line and the MRTS is constant Therefore, if two inputs…

Q: Consider the following production function q = F (L, K) = L²K What is the marginal rate of…

A: Marginal rate of technical substitution (MRTS): - it is the rate that shows the number of one input…

Q: Be the production function Q (K, L)) = (K} +213), that depends on the quantities Used from inputs…

A: Given production function Q=89K13  +2L133

Q: What is the marginal Physical Productivty (MPP) of the inputs given the function Q= 18x21+2x1x2+2x22…

A: What is the marginal Physical Productivity (MPP) of the inputs given the function Q=…

Q: tangency point between an isoquant and an isocost line identines a: The least costly combination of…

A: An isoquant shows the various combinations of factors of two inputs which help in the production of…

Q: Brian uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q =…

A: When the inputs are perfect complements, isoquant is L-shaped.

Q: Relate the concept of marginal rate of substitution back to the idea of willingness to pay and…

A: Solving questions with graph

Q: The slope of the isoquant is the same as O marginal rate of substitution O price of labor O isocost…

A: A production function illustrates the relationship between the inputs used and the output produced…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.