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    Question

    Two resources are said to be substitutes when the

    change in the price of one leads to a change in demand for another which leads to:
    A Positive MRTS Correct Answer Incorrect Answer
    B Negative MRTS Correct Answer Incorrect Answer
    C Zero MRTS Correct Answer Incorrect Answer
    D Either a & c Correct Answer Incorrect Answer

    Solution

    Marginal level of Technical Substitution (MRTS) is negative for substitutes.

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