When two inputs are perfect substitutes

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    The production isoquant is a straight line with a positive slope and the MRTS is constant regardless of the level of inputs.
     The production isoquant is a straight line with a negative slope and the MRTS is constant regardless of the level of inputs.
     The production isoquant is a straight line and the MRTS is zero since the inputs are substituted for each other one for one.
     The production isoquant is a straight line with a negative slope and the MRTS varies as one input is used more intensively than the other.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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The production isoquant is a straight line with a negative slope and the MRTS is constant regardless of the level of inputs.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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