John F. connor, Content Marketing executive, MA, Minsk,Poland
Answered Feb 07, 2019
The marginal rate of technical substitution (MRTS) is the rate at which one factor must decrease so that the same level of productivity can be maintained when another factor is increased. The MRTS reflects the give-and-take between factors, such as capital and labor. The MRTS is the slope of a graph with one factor represented on each axis.
The MRTS slope is an isoquant or a curve that connects the two input points as long as the output remains the same. MRTS differs from the marginal rate of substitution (MRS) because MRTS is focused on producer equilibrium and MRS is focused on consumer equilibrium.
Answer Anonymously
Copy Link
