If capital is represented on the vertical axis and labor on the horizontal axis, the marginal rate of substitution (MRTS) falls in value

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    as more labor is used and the marginal product of labor decreases due to diminishing marginal returns.
     as labor is substituted for capital and the marginal product of capital increases due to diminishing marginal returns.
     as -(?K/?L) falls in value.
     All of the above.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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All of the above.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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