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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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