The slope of an isoquant is equal to
A) the marginal rate of substitution
B) the marginal rate of technical substitution
C) the rate of diminishing marginal utility
D) the rate of diminishing marginal returns
E) economies of scale

Question

Quizplus · Accepted Answer

The slope of an isoquant represents the rate at which one input can be substituted for another while keeping output constant. This is known as the marginal rate of technical substitution. Therefore, the best choice is B.

The Slope of an Isoquant Is Equal to