Marginal rate of technical substitution
id:
marginal-rate-of-technical-substitution-234-1438991
title:
Marginal rate of technical substitution
text:
In microeconomic theory, the marginal rate of technical substitution (MRTS)—or technical rate of substitution (TRS)—is the amount by which the quantity of one input has to be reduced when one extra unit of another input is used, so that output remains constant. M R T S = − Δ x 2 Δ x 1 = M P 1 M P 2 where M P 1 and M P 2 are the marginal products of input 1 and input 2, respectively. Along an isoquant, the MRTS shows the rate at which one input may be substituted for another, while maintaining th
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original url:
https://en.wikipedia.org/wiki/Marginal_rate_of_technical_substitution
date created:
date modified:
2023-10-31T19:19:46Z
main entity:
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image:
{"content_url":"https://upload.wikimedia.org/wikipedia/commons/6/6f/Isoquant_map.png","width":320,"height":256}
fields total:
13
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14