How is the marginal rate of technical substitution calculated in formula?

Question

The fundamentals of microeconomics is not as simple as it seems to be. Microeconomics is a challenging subject that calls for a wide range of abilities. I as a student encounter practical applications of this field's concept everyday. I am weak at the application part of economics. I am quite good at theory part so to cope up from the fear of microeconomics my colleagues suggested me to learn from the scratch to advance level with the help of Economics Homework Help. Additionally Take my economics exam will assist you in your exams as well.

Answer 1

The direct answer to your question is that the marginal rate of technical substution is:

MRTS = -Change in capital input/change in labor input

Often it's written as

-ΔK/ΔL

For example, if you have a production function like:

q = L^1/4K^3/4

Then the MRTS is:

-3/4K^-1/4 / -1/4L^-3/4

Which simplifies to:

3L^3/4 / K^1/4

As far as the rest of your statement goes. There are wonderful work-as-you-go courses online you can do for no cost or you can enroll in an intermediate microeconomics course. This type of problem is not a basic, principles of microeconomics topic.