Suppose that a firm's production function is given as in Question 1. What is the interpretation of the marginal rate of technical substitution at (K,L)=(144,16)? In order to maintain that output level,
a) The rate at which labor can be substituted for capital to maintain output.
b) The rate at which capital can be substituted for labor to maintain output.
c) The rate at which total output increases when both labor and capital increase.
d) The rate at which total output decreases when either labor or capital decreases.