Technical Substitution Homework Help

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The primary aim of using marginal rate of technical substitution is to maintain the same level of productivity. Therefore, it is the speed at which you can decrease one factor for increasing the other to keep maintaining the same productivity levels. Here, the output remains while there is an increase or reduction in the case of inputs.

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Principle of the marginal rate of technical substitution

According to the technical substitution homework help, the marginal rate of technological change follows a simple principle. It means that the output shouldn’t change.

  • In MRTS, you have to substitute the labor because of the capital for producing the goods. However, the quantity of production should remain constant.
  • At some point, the units of capital may incur a loss. Hence, the additional units of labor should compensate it.
  • As the units of work increases, it results in the gradual decrease in the units of the capital. It points to the diminishing nature of the marginal rate.

Defining Marginal Rate of Substitution

In the marginal rate of substitution, a consumer gets ready to give up an asset in exchange for another to maintain the same level of equity. You can use it in the indifference theory for predicting customer’s behavior. You can also use this concept for determining what a customer is willing to use instead of determining what a customer will not use or use it often. You can’t examine the utility here. It is because the client treats that the indifference curve and the combination of goods are of same value.

Differences between both the substitutions

Here are some of the differences that you can notice in the both. The technical substitution assignment help can contribute to giving you a more detailed explanation of this topic.

  • The marginal rate of technological change focuses on the producer equilibrium while the latter concentrates on the consumer equilibrium.
  • Technical work aims at the supply, i.e., the production of goods. However, the marginal rate of substitution points at the demand, i.e., the consumption of products by the customers.

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