Explain why the marginal rate of technical substitution is likely to diminish as more and more labor

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Explain why the marginal rate of technical substitution is likely to diminish as more and more labor is substituted for capital.

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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Question Posted: Dec 22, 2015 02:20 AM

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Explain the term marginal rate of technical substitution. What does a MRTS = 4 mean?
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Explain why the marginal rate of technical substitution is likely to diminish as more and more labor

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As more and more labor is substituted for capital it becomes increasingly ...View the full answer

Microeconomics

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