A line that connects all points where the marginal rate of technical substitution is equal to the ratio of input prices is called the

input demand curve

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total product curve

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expansion path

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isocost line

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Solution

The correct option is C
expansion path

A line that connects all points where the marginal rate of technical substitution is equal to the ratio of input prices is called the expansion path.

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Similar questions

A consumer consumes only two goods. For the consumer to be in equilibrium why must Marginal Rate of Substitution between the two goods must be equal to the ratio of prices of these two goods? Is it enough to ensure equilibrium?

A consumer consumes only two goods. Why is the consumer said to be in equilibrium when he buys only that combination of the two goods which lies at that point on the Indifference curve where the budget line is tangent to the indifference curve? Explain. Use diagram.

Q. If factor inputs are perfect substitute for each other the marginal rate of technical substitution will be _________.

Q. In the case of a straight line demand curve the elasticity of demand is _______ at all the points on the demand curve.

Q. Statement-I A curved, or. straight, line connecting the relevant stress points is called the stress path.
Statement-II : All the total stress paths and the effective stress paths for the drained tests are straight lines at a slope of

45 °

Explain the Statement.

MRS (marginal rate of substitution) along an indifference curve tends to diminish.

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A line that connects all points where the marginal rate of technical substitution is equal to the ratio of input prices is called the

The correct option is C expansion path A line that connects all points where the marginal rate of technical substitution is equal to the ratio of input prices is called the expansion path.

The correct option is C
expansion path

A line that connects all points where the marginal rate of technical substitution is equal to the ratio of input prices is called the expansion path.