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August 25, 2020 8:44 pmpts 30 pts
19 Producer's equilibrium will be achieved at a point where (1) MRTS (Marginal Rate of Technical Substitution) and Price ratio are equal to each other (2) MRTS is greater than the price ratia (3 (4 MRTS is lesser than the price ratio The słopes of isoquant and isa-cost times are different.
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  • Nidhi taparia thankyou
    Option (1) is right. Producer's equilibrium is when isocost line is tangent to isoquant or their slopes are equal. The slope of isocost line is the price ratio of factors and the ...
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