(appendix)The slope of an isoquant at any point reflects the:
A)elasticity of demand for labor
B)isocost line
C)price of capital relative to labor
D)marginal rate of technical substitution

Question

Quizplus · Accepted Answer

The slope of an isoquant at any point reflects the marginal rate of technical substitution (MRTS), which is the rate at which a firm can substitute one input for another while keeping the same level of output. It indicates the amount by which the quantity of one input can be reduced when one extra unit of the other input is used so that the level of output remains constant.

(Appendix)The Slope of an Isoquant at Any Point Reflects The