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The Slope of the Isocost Line

Question 53

Multiple Choice
The slope of the isocost line:
A)changes as the combination of labor and capital is altered by the firm.
B)is equal to the ratio of the marginal productivities at all points along the isocost line.
C)is equal to the negative of the ratio of the prices of the outputs.
D)is equal to the negative of the ratio of the prices of the inputs.

The slope of the isocost line:


A) changes as the combination of labor and capital is altered by the firm.
B) is equal to the ratio of the marginal productivities at all points along the isocost line.
C) is equal to the negative of the ratio of the prices of the outputs.
D) is equal to the negative of the ratio of the prices of the inputs.

Correct Answer:

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