What term describes the rate at which a company can replace labor with capital while keeping the same level of output?

Explanation

The marginal rate of factor substitution refers to the rate at which one input, such as capital, can be substituted for another input, like labor, without changing the output level. This distinguishes it from the marginal rate of substitution, which typically relates to consumer preferences, and from concepts like the law of diminishing marginal returns or marginal rate of production.