At L= 62 ans K=101, the marginal product of labor is 10 and the marginal product of capital is 6....
Question:
At L= 62 ans K=101, the marginal product of labor is 10 and the marginal product of capital is 6. What is the marginal rate of technical substitution ?(labor measured on the horizontal axis)
The marginal rate of technical substitution is _____ . (Enter a numeric response using a real number rounded up to two decimal places.)
Marginal Rate of Technical Substitution:
The marginal rate of technical substitution shows the rate at which two inputs are used in the production process, that are Labor and Capital, to produce a given level of output. It is equal to the slope of the isoquant curve.
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Production Function in Economics: Definition, Formula & Example
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