What does a MRTS​ = ​mean? It means that if the input on the horizontal axis is increased by one​ unit, then the input on the vertical axis ▼ increases decreases by units and output will ▼ increase decrease not change .


Answer 1


MRTS​ means that if the input on the horizontal axis is increased by one​ unit, then the input on the vertical axis decreases by units and output will not change.


The marginal rate of technical substitution (MRTS) can be described as the amount by which one input's quantity must be decreased when an additional unit of another input is used to keep output constant. MRST is also known as technical rate of substitution.

Therefore, MRTS​ means that if the input on the horizontal axis is increased by one​ unit, then the input on the vertical axis decreases by units and output will not change.

Related Questions

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Lisa Frees and Amelia Ellinger had been operating a catering business for several years. In March 2014, the partners were planning to expand by opening a retail sales shop and decided to form the business as a corporation called Traveling Gourmet, Inc. The following transactions occurred in March 2014: a. Received $80,000 cash from each of the two shareholders to form the corporation, in addition to $2,000 in accounts receivable, $5,300 in equipment, a van (equipment) appraised at a fair market value of $13,000, and $1,200 in supplies. Gave the two owners each 500 shares of common stock with a par value of $1 per share. b. Purchased a vacant store for sale in a good location for $360,000, making a $72,000 cash down payment and signing a 10-year mortgage from a local bank for the rest. c. Borrowed $50,000 from the local bank on a 10 percent, one-year note. d. Purchased and used food and paper supplies costing $10,830 in March; paid cash. e. Catered four parties in March for $4,200; $1,600 was billed, and the rest was received in cash. f. Made and sold food at the retail store for $11,900 cash. g. Received a $420 telephone bill for March to be paid in April. h. Paid $363 in gas for the van in March. i. Paid $6,280 in wages to employees who worked in March. j. Paid a $300 dividend from the corporation to each owner. k. Purchased $50,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $20,000 (added to the cost of the building); paid cash. Compute ending balances for Cash, Accounts Receivable, Supplies, Equipment, Building, Accounts Payable, Note Payable, Mortgage Payable, Common Stock, Additional Paid-in Capital, Retained Earnings, Food Sales Revenue, Catering Sales Revenue, Supplies Expense, Utilities Expense, Wages Expense, and Fuel Expense. 1. Prepare an income statement in good form for the month of March 2014. (Ignore retained earnings and 80,000 in the table just below)2. Operating (O), investing (I), and financing (F) activities affecting cash flows. Include the direction and invest of the effect
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Is cost minimization equivalent or identical the concept of product maximization. True of False. Explain
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According to the quantity equation, the price level would change less than proportionately with a rise in the money supply if there were also



the correct answer is either a rise in output or a fall in velocity.

good luck

A company is considering the purchase of new equipment for $69,000. The projected annual net cash flows are $27,800. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 9% return on investment. The present value of an annuity of $1 for various periods follows: Period Present value of an annuity of $1 at 9% 1 0.9174 2 1.7591 3 2.5313 What is the net present value of this machine assuming all cash flows occur at year-end?



The correct answer is $1,370


The computation of net present value is shown below:-

For computing the net present value first we need to find out the present value of inflow

Present Value of Inflow of 3 Years at 9% = Net cash flow × Number of years

= $27,800 × 2.5313

= $70,370

Net Present Value = Present value of inflow - Initial Outflow

= $70,370 - $69,000

= $1,370

Therefore for computing the net present value we simply deduct the initial outflow from present value of inflow.

Garcia Co. sells snowboards. Each snowboard requires direct materials of $105, direct labor of $35, and variable overhead of $50. The company expects fixed overhead costs of $645,000 and fixed selling and administrative costs of $111,000 for the next year. It expects to produce and sell 10,500 snowboards in the next year.Required:
What will be the selling price per unit if Garcia uses a markup of 15% of total cost?



Selling price = $301.3


The selling price would be determined by adding the total unit cost to the mark- up.

Mark up is the proportion of cost that is to be earned as profit.

Selling price = Total unit cost + Profit

Profit = 25% × unit cost

Selling price = Unit cost + Mark-up

Selling price = Unit cost + (15%× unit cost)

Total unit cost =Variable cost + unit fixed cost

Total fixed cost = 645,000 +  111,000 = 756,000

Unit fixed cost = $756,000/10,500 =×72

Total unit cost = 105 + 35 + 50 + 72 = 262

Selling price = 262 + ( 15% + 262) = 301.3

Selling price = $301.3

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $168,120. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $22,500 at the beginning of each period Economic life of asset 2 years Fair value of asset $168, 120 Implicit interest rate (Also lessee's incremental borrowing rate) 88 Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis.


Complete Question

The  complete question is shown on the first uploaded image


Now the calculation of this question and its solution is shown on the second and  third uploaded image


For this question we will be making use of the excel formula

Now note since the installment is paid at the beginning of each quarter, there will be no interest charged in the first quarter and the whole amount paid will be adjusted against the outstanding lease balance.

An investment has an expected return of 11 percent per year with a standard deviation of 26 percent. Assuming that the returns on this investment are at least roughly normally distributed, how often do you expect to earn less than -15 percent?




And we can find this probability using the normal standard distribution table or excel and we got:



Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".  

Solution to the problem

Let X the random variable that represent the expected return, and for this case we know the distribution for X is given by:

X \sim N(11,26)  

Where \mu=11 and \sigma=26

We are interested on this probability


And the best way to solve this problem is using the normal standard distribution and the z score given by:


If we apply this formula to our probability we got this:


And we can find this probability using the normal standard distribution table or excel and we got:


Last month, Price Company purchased supplies on account, $5,000. Today, Price Company pays the amount that is owed.Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, the Capital Stock account, and the Retained Earnings account?

Check all that apply.

An asset account increases. An asset account decreases.

A liability account increases. A liability account decreases.

Capital Stock increases. Capital Stock decreases.

Retained Earnings increase. Retained Earnings decrease.



Asset Account is decreased.

Liability Account is also decreased.

No effects on Capital Stock.

No effects on Retained Earnings.


Asset Account is decreased by $5000 because Cash is paid for the purchases made on account last month.

Liability Account is decreased by $5000 because accounts payable for the purchases made In the last month is now paid.

This transaction will have no effects on Capital Stock Account and Retained Earnings Account.

Other Questions
I'm having a difficult time with my accounting workbook. I post the adjusting entries, but my balance sheet never equalizes. Can someone point me where i'm going wrong? 1. A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight for $175, all dated 12/29/17. Goods were shipped FOB supplier’s warehouse. 2. At 12/31/17, Peyton has $200 worth of merchandise on consignment at Bruno’s House of Bacon. 3. On 12/23/17, Peyton received a $1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January. 4. On 12/03/2017, a mixer with cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay $700 in January, 2018, for accidental destruction. 5. Note about later borrowing financials will show loan from parents repaid and use of bank financing.PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Unadjusted trial balance Adjusting entries Adjusted trial balance Dr Cr ref Dr Cr ref Dr Cr Cash 67,520.04 67,520.04 Accounts Receivable 68,519.91 68,519.91 Other Receivable - Insurance Baking Supplies 15,506.70 15,506.70 Merchandise Inventory 1,238.07 1,238.07 Consignment Inventory Prepaid Rent 2,114.55 2,114.55 Prepaid Insurance 2,114.55 2,114.55 Misc. Supplies 170.49 170.49 Baking Equipment 14,000.00 14,000.00 Accumulated Depreciation 1,606.44 1,606.44 Customer Deposit - Accounts Payable 20,262.11 20,262.11 Wages Payable 3,383.28 3,383.28 Interest Payable 211.46 211.46 Notes Payable 5,000.00 5,000.00 Common Stock 20,000.00 20,000.00 Beginning Retained earnings 50,144.84 50,144.84 Dividends 105,000.00 105,000.00 Bakery Sales 327,322.55 327,322.55 Merchandise Sales 1,205.64 1,205.64 Cost of Goods Sold - Baked 105,834.29 105,834.29 Cost of Goods Sold - Merchandise 859.77 859.77 Rent Expense 24,549.19 24,549.19 Wages Expense 10,670.72 10,670.72 Misc. Supplies Expense 3,000.46 3,000.46 Business License Expense 2,045.77 2,045.77 Misc. Expense 1,363.84 1,363.84 Depreciation Expense 677.86 677.86 Insurance Expense 1,091.08 1,091.08 Advertising Expense 1,549.74 1,549.74 Interest Expense 818.31 818.31 Telephone Expense 490.98 490.98 Gain/Loss on disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32