given that the two factor of production behave as perfect substitutes to one another in the production process, what will be the shape of the corresponding isoquant and the value of the MRTS as we move down along the isoquant ?
Answer (1)
11th Nov, 2020
Hello aspirant,
If the two factors of production in the production process are perfect substitutes of each other , the shape of isoquant would be a downward sloping straight line and the value of Marginal Rate of Technical Substitution ( MRTS ) would be constant.
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