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In microeconomic theory, the marginal rate of technical substitution —or technical rate of substitution —is the amount by which the quantity of one input has to be reduced when one extra unit of another input is used , so that output remains constant.
M R T S = − Δ x 2 Δ x 1 = M P 1 M P 2 {\displaystyle MRTS=-{\frac {\Delta x_{2}}{\Delta x_{1}}}={\frac {MP_{1}}{MP_{2}}}}
where M P 1 {\displaystyle MP_{1}} and M P 2 {\displaystyle MP_{2}} are the marginal products of input 1 and input 2, respectively.
Along an isoquant, the MRTS shows the rate at which one input may be substituted for another, while maintaining the same level of output. Thus the MRTS is the absolute value of the slope of an isoquant at the point in question.