The slope of an isoquant is A)-∆K/∆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). Therefore, the slope of an isoquant is equal to both MP_L / MP_K and the MRTS.

The Slope of an Isoquant Is