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Answer on Economics of Enterprise Question for rabecca

Question #5511

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

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Assignment Expert
13.12.2011 08:20

You are welcome

09.12.2011 22:30

thank u.........

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