Author Question: Holding the total output constant, the rate at which one input X may be substituted for another ... (Read 15 times)

HudsonKB16 · **on:** Jul 1, 2018

Holding the total output constant, the rate at which one input X may be substituted for another input Y in a production process is:
a. the slope of the isoquant curve
b. the marginal rate of technical substitution (MRTS)
c. equal to MPx/MPy
d. all of the above
e. none of the above

Question 2

A solution to the budget-gaming problem is
a. Remove all kinks from the compensation schedule
b. Use a straight line pay for performance function
c. Do not base compensation on meeting a particular budget goal
d. All of the above