Suppose a firm is planning to replace a labor intensive production process with an automated robot production line. Calculate the marginal rate of technical substitution (MRTS) using the following information. Labor Intensive Production: 24 workers / 3 machines Automated Robot Production: 10 workers / 30 machines Assume both production process can produce the same level of output.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
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Suppose a firm is planning to replace a labor intensive production process with an automated robot production line. Calculate the marginal rate of technical substitution (MRTS) using the following information.

Labor Intensive Production: 24 workers / 3 machines

Automated Robot Production: 10 workers / 30 machines

Assume both production process can produce the same level of output. 

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