MRTS Full Form In Economics English
MRTS stands for Marginal Rate of Technical Substitution. It is a key concept in the theory of production and is used to explain how a firm can substitute one input for another while maintaining the same level of output. The MRTS refers to the rate at which one factor of production (like labor) can be substituted for another (like capital), keeping the output constant. It is mathematically defined as the absolute value of the slope of an isoquant, which is a curve representing different combinations of two inputs that produce the same level of output.
For example, if a firm wants to reduce the number of machines it uses, it may need to hire more workers to keep production unchanged. The MRTS tells us how many units of capital can be reduced for each additional unit of labor, without changing the total output. MRTS is usually diminishing, meaning that as more of one input is used, the firm must give up increasing amounts of the other input to maintain the same level of output. This reflects the law of diminishing returns in production.
MRTS Full Form In Economics Hindi
अर्थशास्त्र में MRTS का पूर्ण रूप है Marginal Rate of Technical Substitution, जिसे हिंदी में प्रौद्योगिकीय प्रतिस्थापन की सीमांत दर कहा जाता है। यह उत्पादन के सिद्धांत में एक महत्वपूर्ण अवधारणा है और यह बताती है कि किसी फर्म द्वारा एक ही उत्पादन स्तर बनाए रखते हुए एक उत्पादन तत्व को दूसरे से कितनी मात्रा में बदला जा सकता है।
उदाहरण के रूप में, यदि कोई कंपनी मशीनों की संख्या को कम करना चाहती है, तो उसे उतना ही उत्पादन बनाए रखने के लिए श्रमिकों की संख्या बढ़ानी पड़ सकती है। MRTS यह दर्शाता है कि कितनी मात्रा में पूंजी (Capital) को घटाया जा सकता है, जब एक अतिरिक्त श्रमिक (Labor) को जोड़ा जाता है, जबकि उत्पादन स्थिर रहता है।MRTS को आमतौर पर घटता हुआ माना जाता है, जिसका अर्थ है कि जैसे-जैसे एक तत्व की मात्रा बढ़ती है, दूसरे तत्व को त्यागने की दर भी बढ़ती है ताकि उत्पादन समान बना रहे। यह उत्पादन में घटते प्रतिफल के नियम (Law of Diminishing Returns) को दर्शाता है।
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Frequently Asked Questions
What is the full form of MRTS in economics?
MRTS stands for Marginal Rate of Technical Substitution.
What does MRTS explain in economics?
MRTS explains how one input (like labor) can be substituted for another input (like capital) while keeping the output constant.
What is the formula for MRTS?
MRTS = MPL / MPK, where MPL is the marginal product of labor and MPK is the marginal product of capital.
Is MRTS always constant?
No, MRTS usually diminishes. This means more and more of one input is required to replace another while maintaining the same output level.
What is the relation between MRTS and isoquants?
MRTS is the slope of the isoquant. Isoquants show different combinations of two inputs that produce the same output.
Why is MRTS important in production theory?
It helps firms understand how to allocate inputs efficiently and make cost-effective production decisions.
Can MRTS be negative?
No, MRTS is generally expressed as a positive value because it reflects the absolute rate of substitution between inputs.
Conclusion
In conclusion, the full form of MRTS in economics is Marginal Rate of Technical Substitution. It is a key concept in production theory that explains how a firm can substitute one input (like labor) for another (like capital) while keeping output constant. Understanding MRTS helps economists and businesses make efficient production decisions, minimize costs, and optimize resource allocation. This concept is crucial for analyzing input combinations and improving productivity in both short-run and long-run production processes.
