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Economics
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Producer Theory
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Marginal Rate of Technical Substitution (MRTS)
Marginal Rate of Technical Substitution (MRTS)
The rate at which capital (K) can be substituted for labor (L) while maintaining a constant output level. It is defined as the absolute value of the slope of the isoquant:
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MRTS_{L,K} = \left| \frac{\partial K}{\partial L} \right| = \frac{MP_L}{MP_K}
MRT
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