How to Calculate Marginal Rate of Substitution using indifference curves

Marginal rate of technical substitution for a Cobb-Douglas production function F (z1, z2) = z11/2z21/2. z2 = y2/z1. dz2/dz1 = y2/z12 = z2/z1. MRTS(z1, z.

K K. MRTS = M RT S = \text {Isoquant for } q=20 Isoquant for q = MARGINAL RATE OF TECHNICAL SUBSTITUTION. The MRTS is the magnitude of the slope of a line .

How to find marginal rate of technical substitution - Answer and Explanation: 1. The formula to calculate the marginal rate of substitution is MU (x)/MU (y) where MU (x) = Marginal Utility from good x and MU (y) = Marginal Utility from .

How to find marginal rate of technical substitution - It means that the marginal rate of technical substitution (MRTS LK) of labor (L) and capital (K), is the number of units of capital (K) which can be substituted by one unit of labor (L) .

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3 thoughts on “How to find marginal rate of technical substitution”

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