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. At Point A the absolute value of the slope of the q¹ = 100 isoquant is A) less than 2. B) exactly equal to 2. C) greater than 2. D) indeterminate from this information.

Question

Quizplus · Accepted Answer

The slope of an isoquant represents the marginal rate of technical substitution (MRTS), which is the rate at which one input can be substituted for another while keeping output constant. At Point A, if the absolute value of the slope is greater than 2, it means that more than 2 units of one input are needed to replace one unit of the other input to maintain the same level of output, indicating a steep slope. Without the specific figure, we rely on the given information that suggests a comparison to a numerical value (2), implying that the slope's absolute value can be determined relative to this number, leading to the conclusion that it is greater than 2 based on the provided options.

Refer to the Information Provided in Figure 7