Explain why the marginal rate of technical substitution is likely to diminish as more and more labor is substituted for capital.A.The substitution of labor for capital decreases the MPL to a greater extent than it increases the MPK. Since the MRTS is the product of the former and the​ latter, it will diminish as this substitution occurs.B.The substitution of labor for capital increases the MPL and decreases the MPK. Since the MRTS is the ratio of the latter to the​ former, it will diminish as this substitution occurs.C.The substitution of labor for capital decreases the MPL and increases the MPK. Since the MRTS is the ratio of the former to the​ latter, it will diminish as this substitution occurs.D.The substitution of labor for capital increases the MPL and decreases the MPK. Since the MRTS is the ratio of the former to the​ latter, it will diminish as this substitution occurs.

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