What is the marginal rate of technical substitution

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1. What is the marginal rate of technical substitution? What does it imply about an isoquant's shape?

2. What does the curvature of an isoquant imply about the two inputs, capital and labor?

3. What is an isocost line? What does its slope tell us about the relative cost of labor and capital?

4. How will a firm react to an increase in the price of one input relative to another?

Reference no: EM131336064

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