The Marginal Rate of Technical Substitution of Labor for Capital

Multiple Choice

The marginal rate of technical substitution of labor for capital is defined as:

A) The rate at which the quantity of capital can be decreased for every one unit increase in the quantity of labor, holding the quantity of output constant
B) The rate at which the quantity of capital must be increased for every one unit decrease in the quantity of labor, holding the cost of output constant.
C) The rate at which the cost of labor and capital increases as output rises.
D) The rate at which output rises as capital increases, holding labor constant.