how to calculate the marginal rate of technical substitution mrts
an isoquant is a graph showing combinations of capital and labor that will yield the same output the slope of the isoquant indicates the mrts or at any point along the isoquant how much capital would be required to replace a unit of labor at that production point for example in the graph of an isoquant where capital represented with k on its y axis and labor represented with l on its x axis the slope of the isoquant or the mrts at any one point is calculated as dl dk 