Modern Economic Theory

I is the marginal rate of technical substitution (MRTS) at this stage. Now hy comparing combinations D and C, it wi he found that there 3 units of factor Y can be replaced by I unit of factor X without any loss of output. Therefore, here the marginal rate of technical substitution is 3 : I. Similarly, the marginal rate of technical substitution between C and D is 2 : I and between D and E is I : I. Algebraically, it can be stated that

FACTOR X

[av_button label='Get Any Economics Assignment Solved for US$ 55' link='manually,http://economicskey.com/buy-now' link_target='' color='red' custom_bg='#444444' custom_font='#ffffff' size='large' position='center' icon_select='yes' icon='ue859' font='entypo-fontello']

Share This