Question

The (negative) of the slope at any point along an isoquant is called:

Select one:

a. the marginal rate of technical productivity

b. the marginal rate of technical substitution

c. the marginal rate of technological progress

d. the marginal rate of technical change

Answer 1

ANSWER-

The slope of isoquant is negative because the same level of production occurs when units of one input is increased the units of another input has to be decreased. The slope of isoquant is tangent line this slope is called marginal rate of technical substitution (MRTS). It shows how much capital is to be employed in order to decrease the inputs of labor to maintain the output.

Therefore, The (negative) of the slope at any point along an isoquant is called the marginal rate of technical substitution.

Hence, the answer is option (b) the marginal rate of technical substitution.