Select Your Favourite
Category And Start Learning.

  • ICAR and TNAU E-Course Summarized

    Summarized Notes
  • The optimum product combination at a given level of resources will be where:

    Question: The optimum product combination at a given level of resources will be where:

    Options:

    ∆y1/∆y2= Py1/Py2
    ∆y2 /∆y1= Py1/Py2
    ∆x1/ ∆2= Px 1/ Px2
    ∆x2/ ∆x1= Px1/ Px2

    ✅ Explanation: The optimum product combination is achieved when the marginal rate of product substitution (MRPS) equals the price ratio of the two products. MRPS is the rate at which a firm can substitute one output for another while keeping the total resource cost constant. In this case(b) ∆y2 /∆y1= Py1/Py2 represents the MRPS, and Py1/Py2 represents the price ratio.
      0
      Your Cart
      Your cart is emptyReturn to Shop