# Answer on Economics of Enterprise Question for rabecca

Question #5511

q=100+p-0.01p2+2n-0.03n2

determine the marginal rate of technical substitution.

determine the marginal rate of technical substitution.

Expert's answer

Marginal Rate of Technical Substitution (or Technical Rate of Substitution) is the amount by which the quantity of one input (n)& has to be reduced when one extra unit of another input (n2) is used, so that the total output (q) remains constant:

Dn/Dn2 = MP(n2)/MP(n) = -0.03/2= -0.015 – MRTS for the input n for n2

Dn/Dn2 = MP(n2)/MP(n) = -0.03/2= -0.015 – MRTS for the input n for n2

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## Comments

Assignment Expert13.12.2011 08:20You are welcome

rabecca09.12.2011 22:30thank u.........

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