Constant marginal rate of technical substitution


Problem 1: Which of the following combination of inputs is most closely reflective of decreasing marginal rate of technical substitution (MRTS)?

a. oil and natural gas

b. sugar and high fructose corn syrup

c. computers and clerks

d. keyboards and computers

Problem 2: Which of the following is the best example of two inputs that would exhibit a constant marginal rate of technical substitution?

a. trucks and truck drivers

b. natural gas and oil

c. personal computers and clerical workers

d company employed computer programmers and temporary supplemental computer programmers

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Macroeconomics: Constant marginal rate of technical substitution
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