Is the mrts?
a. minuse one times the ratio of marginal products for ea. input?
b. the slope of the marignal revenue product curve
c. the marginal products of either input
d. the slope of an icocost curve
What is mrts?
http://www.google.com/search?source=ig&hl=en&rlz=1G1GGLQ_ENUS374&q=mrts&aq=f&aqi=g9g-s1&aql=&oq=&gs_rfai=
To determine whether the MR (Marginal Rate of Technical Substitution) is any of the options you provided, let's break down each option and analyze them one by one.
a. Minus one times the ratio of marginal products for each input:
To calculate the MR, you would need to take the ratio of the marginal products of each input, but there is no mention of the subtraction of one or multiplying it by a constant in this context. Therefore, the MR is not option a.
b. The slope of the marginal revenue product curve:
The marginal revenue product (MRP) curve represents the additional revenue generated by adding one more unit of input. While the slope of the MRP curve is related to the concept of MR, they are not the same thing. The MR is specifically about the substitution between inputs, whereas the slope of the MRP curve relates to how the revenue changes in response to adding more input. Therefore, the MR is not option b.
c. The marginal products of either input:
The marginal product represents the additional output produced by adding one more unit of a specific input while keeping the other inputs constant. While the marginal product is related to the concept of MR, it is not the MR itself. The MR is specifically about the rate at which one input can be substituted for another to achieve the same level of output. Therefore, the MR is not option c.
d. The slope of an iso-cost curve:
The iso-cost curve represents the combinations of inputs that can be purchased at a given cost. The slope of the iso-cost curve represents the rate at which one input can be exchanged for another without changing the total cost. Similar to option b and c, while the slope of the iso-cost curve is related to the concept of MR, they are not the same thing. The MR is specifically about the substitution between inputs to maintain a certain output level. Therefore, the MR is not option d.
In summary, after analyzing each option, none of them accurately describes the MR. The MR represents the rate at which one input can be substituted for another while keeping the output constant.