![marginal rate of technical substitution](https://host.easylife.tw/files/vSubst_1.8.0.2.gif)
Whenrelativeinputusagesareoptimal,themarginalrateoftechnicalsubstitutionisequaltotherelativeunitcostsoftheinputs,andtheslopeofthe ...,2024年2月1日—Themarginalrateoftechnicalsubstitution(MRTS)isaneconomictheorythatdescribestherateatwhichonefactorw...
Marginal Rate of Substitution
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TheFormulaforMarginalRateofTechnicalSubstitution:MRTS=-MPL/MPK.Here,MPLreferstothemarginalproductoflabour,andMPKreferstothemarginal ...
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