Producer’s equilibrium is achieved at the point where:
A. The marginal rate of technical substitution(MRTS) is greater than 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 Iso-quant and Iso-cost lines are different.
Answer:C
Producer’s equilibrium is achieved at the point where:
A. The marginal rate of technical substitution(MRTS) is greater than 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 Iso-quant and Iso-cost lines are different.