Question

If by increasing the quantity of input $X_1$ by one unit, the farmer can give up two units of input $X_2$ and still produce the same output, then the $MRS_{X1,X2}$ is:

• A. 0.5
• B. 0
• C. 0
• D. 0

Hint:

The subscript order $MRS_{A, B}$ represents the amount of input B we are willing to substitute/give up per unit of input A gained. Thus, it is simply $\text{units of B given up} / \text{units of A added}$.

Answer 1

The Correct Option is B