Producer’s equilibrium is achieved at the point where ……………………….
A. Marginal rate of technical substitution (MRTS) is greater the price ratio
B. MRTS is lesser than the price ratio
C. MRTS and price ratio are equal to each other
D. The slopes of isoquant and isocost lines are different.
Answer:C
Producer’s equilibrium is achieved at the point where ……………………….
A. Marginal rate of technical substitution (MRTS) is greater the price ratio B. MRTS is lesser than the price ratio C. MRTS and price ratio are equal to each other D. The slopes of isoquant and isocost lines are different.