Question

1. The following graph shows one of a firm's isocost curves and isoquants.



a. At the economically efficient method of producing 4,000 units of output the MRTS will equal _________.

Answer 1

1a. If the following graph shows one of a firm's isocost curves and isoquants, then at the economically efficient method of producing 4,000 units of output the MRTS will equal MRTS = MP1/MP2,
where MP1 and MP2 are the marginal products of input 1 and input 2, respectively.