Marginal rate of technical substitution Concept
Marginal rate of technical substitution (or Technical Substitution Ratio) represents a rate at which a company can replace a productive factor by another, maintaining the same production level. In an isoquants map, and for each combination of productive factors, the Marginal rate of technical substitution is given by the isoquant inclination which passes in the point that represents the referred combination of the productive factors.
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