The marginal rate of technical substitution always equals A. minus the ratio of the marginal products of inputs. B. the slope of the total product curve. C. the change in output due to a change in the amount of one input. D. the distance between two isoquants.

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?