Refer to the information provided in Figure 7.9 below to answer the question(s) that follow. Figure 7.9
-Refer to Figure 7.9. The slope of isocost AB is
A) -1.
B) 0.
C) 1.
D) indeterminate from this information, as the prices of capital and labor are not given.

Question

Refer to the information provided in Figure 7.9 below to answer the question(s) that follow.  Figure 7.9
-Refer to Figure 7.9. The slope of isocost AB is
A) -1. 
B) 0. 
C) 1. 
D) indeterminate from this information, as the prices of capital and labor are not given.

Quizplus · Accepted Answer

The slope of an isocost line is equal to the negative of the ratio of the price of capital to the price of labor. Since the prices of capital and labor are not given in the question, the slope of the isocost line cannot be determined.

Refer to the Information Provided in Figure 7