The slope of an isoquant is A)-$\Delta$K/$\Delta$L. B) MP_L / MP_K. C) the marginal rate of technical substitution . D) both a and b E) all of the above

Question

Quizplus · Accepted Answer

The slope of an isoquant is the marginal rate of technical substitution (MRTS), which is the rate at which one input can be substituted for another while keeping output constant. The MRTS is equal to the ratio of the marginal product of labor (MP_L) to the marginal product of capital (MP_K), which is equal to the negative of the ratio of the change in capital (ΔK) to the change in labor (ΔL). Therefore, all of the choices are correct.

The Slope of an Isoquant Is A)- Δ\DeltaΔ K Δ\DeltaΔ L B) MPL / MPK

The Slope of an Isoquant Is
A)- $\Delta$ K $\Delta$ L
B) MP_L / MP_K