Refer to the information provided in Figure 7.10 below to answer the question(s) that follow. Figure 7.10
-Refer to Figure 7.10. The slope of the isocost line (in absolute value) is
A) greater than 1.
B) less than one.
C) equal to 1.
D) equal to 0.

Question

Refer to the information provided in Figure 7.10 below to answer the question(s) that follow.  Figure 7.10
-Refer to Figure 7.10. The slope of the isocost line (in absolute value) is
A) greater than 1. 
B) less than one. 
C) equal to 1. 
D) equal to 0.

Quizplus · Accepted Answer

The slope of the isocost line is determined by the ratio of the prices of the inputs. If the price of one input is less than the other, the slope will be less than 1 in absolute value.

Refer to the Information Provided in Figure 7