Back to Questions
Want to know:
Explain why the marginal rate of technical substitution is likely to diminish as more and more labor is substituted for capital.A.The substitution of labor for capital decreases the MPL to a greater extent than it increases the MPK. Since the MRTS is the product of the former and the latter, it will diminish as this substitution occurs.B.The substitution of labor for capital increases the MPL and decreases the MPK. Since the MRTS is the ratio of the latter to the former, it will diminish as this substitution occurs.C.The substitution of labor for capital decreases the MPL and increases the MPK. Since the MRTS is the ratio of the former to the latter, it will diminish as this substitution occurs.D.The substitution of labor for capital increases the MPL and decreases the MPK. Since the MRTS is the ratio of the former to the latter, it will diminish as this substitution occurs.
Get a detailed, AI-powered explanation for this question and thousands more on StudyFetch.
Get the Answer for FreeHow StudyFetch Helps You Master This Topic
AI-Powered Answers
Get instant, detailed explanations powered by AI that understands your course material.
Deep Understanding
Go beyond surface-level answers with step-by-step breakdowns and examples.
Personalized Learning
Sparky adapts to your learning style and helps you connect ideas.
Practice & Test
Turn any question into flashcards, quizzes, and practice tests to solidify your knowledge.
Explore More Questions
- Methyl (Me) Chemical Composistion
- Article 1 Section 9 of the constitution denies powers to who?
- PC Sec. 9.04. THREATS AS JUSTIFIABLE FORCE. The threat of force is justified when the use of force is justified by this chapter. For purposes of this section, a ____________ to cause death or serious bodily injury by the production of a weapon or otherwise, as long as the actor's purpose is ___________ to creating an apprehension that he will use deadly force if necessary, does not constitute the use of deadly force.