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Statistics Help

**Question: **1.what is the rate at which a firm can substitute one factor for another while still producing the same level of output is known as?

1. degree of returns to scale

2. marginal rate or substitution

3. marginal rate of technical substitution

2. the marginal output rule states that if a firm does not shut down,then it should produce output at a level where?

3. assume that a firm is a price taker in its input markets.if the firms technology is characterized by diminishing marginal physical product of its variable input in the short run,the firmsn the short run will be?

4.for a price taking firm in both the input and output markets,the M RP curve for labor slopes downward because? Edit

**Answer: **1. Marginal Rate of Technical Substitution

2. p>AVC

3. having an upward sloping supply curve.

4. of law of diminishing marginal returns. in the short run, if a firm increases output by adding variable labour to fixed capital then eventually diminishing marginal returns (physical product of labour) will set in. In other words, at some point an extra worker will add less output to the grand total than the previous worker. Edit

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