The slope of an isoquant measures
A)the marginal rate of (technical)substitution between factors.
B)the average capital/labour ratio.
C)the marginal cost of a given level of output.
D)the ratio of prices of inputs.
E)the ratio of prices of goods.

Question

Quizplus · Accepted Answer

The slope of an isoquant represents the rate at which one input can be substituted for another to maintain the same level of output. This is also known as the marginal rate of technical substitution (MRTS). Therefore, choice A is the correct answer.

The Slope of an Isoquant Measures