Marginal rate of factor substitution ( X_1 X_2 ) is equivalent to

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This question belongs to Agriculture Agricultural Economics

Agricultural Economics

?

Marginal rate of factor substitution $$\left( {\frac{{\vartriangle {{\text{X}}_1}}}{{\vartriangle {{\text{X}}_2}}}} \right)$$ is equivalent to

A) $$\frac{{{\text{P}}{{\text{X}}_1}}}{{{\text{P}}{{\text{Y}}_1}}}$$ B) $$\frac{{{\text{P}}{{\text{X}}_2}}}{{{\text{P}}{{\text{Y}}_2}}}$$ C) $$\frac{{{\text{P}}{{\text{X}}_2}}}{{{\text{P}}{{\text{Y}}_1}}}$$ D) $$\frac{{{\text{P}}{{\text{X}}_1}}}{{{\text{P}}{{\text{Y}}_2}}}$$

Answer & Solution

Correct Answer: Option C

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Marginal rate of factor substitution left( frac vartriangle text X 1...

Marginal rate of factor substitution $$\left( {\frac{{\vartriangle {{\text{X}}_1}}}{{\vartriangle {{\text{X}}_2}}}} \right)$$ is equivalent to

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