The marginal rate of technical substitution is
A. the slope of the isocost curve.
B. the rate at which the firm can substitute labor for capital while holding total cost constant.
C. the rate at which the firm can substitute labor for capital while holding output constant.
D. both a and c
E. none of the above
Answer: C
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Suppose the United Auto Workers' Union succeeded in obtaining a 10 percent increase in the wages of its workers and that the wage increase caused automobile prices to rise. Employment in the auto industry would be most likely to decline significantly if
a. the demand for American-made automobiles was highly elastic. b. the supply of foreign-produced automobiles was highly inelastic. c. American consumers considered foreign automobiles a poor substitute for American automobiles. d. the demand for American automobiles was relatively constant and highly inelastic.
The supply curve displays the wishes of _____________.
Fill in the blank(s) with the appropriate word(s).
The Sherman Antitrust Act was passed in
a. 1836. b. 1890. c. 1914. d. 1946.
An improvement in the technology used to produce cell phones would be shown by a:
A. rightward shift of the supply curve for cell phones. B. leftward shift of the supply curve for cell phones. C. rightward shift of the demand curve for cell phones. D. leftward shift of the demand curve for cell phones.