3. Suppose Alex and Jessica close their coffee shop two hours early for one whole week to train their baristas to make better coffee at a faster rate, so their production oflabor doubles relative to their production of capital. What happens to the shop's MRTS? ls this a factor- neutral technical change? Explain. Answer. This The MRTS changes in its slope, because labor is more productive relative to capital. cannot be a factor neutral technical change because the MRTS changed due to the improvement of labor production.