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Ugo [173]
3 years ago
7

A firm has a production process in which the inputs to production are perfectly substitutable in the long run. Can you tell whet

her the marginal rate of technical substitution is high or​ low, or is further information​ necessary? Discuss. In this​ example, the marginal rate of technical substitution​ (MRTS) is
Business
1 answer:
Marizza181 [45]3 years ago
7 0

Answer: MRTS =1

Explanation

Since the inputs of the firm are perfectly substitute

MRTS =DC/DL

Where DC = change in capital

= change labour

This means that the graph of labour on x axis and capital on y axis is a straight line graph

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7 0
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<u />

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