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In production theory, it states that the optimal cost minimising bundle for a firm occurs where the marginal rate of technical substitution (derivative at the point of an isoquant) is equal to the price ratio of inputs.
For a firm that has a fixed proportion production curve (L-sjaped isoquants), does the MRTS exist? Since the isoquants are L shaped, the derivative at a corner doesn't exist, is it then right to say that MRTS doesn't exist since the firm doesn't substitute any good when the price changes?
Following on, does that also imply that the expansion path of the firm doesn't depend on the price of the inputs (e.g. wage rate of labour and cost of capital)?
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