The marginal rate of technical substitution

Managerial Economics

The marginal rate of technical substitution

Determines the rate at which a producer can substitute between two inputs in order to increase one additional unit of output
Is the absolute value of the slope of the isoquant
Is the absolute value of marginal revenue
Is constant along the isoquant curve

The marginal rate of technical substitution is the absolute value of the slope of the isoquant.

Tags: The Production Process and Costs