The steeper an isoquant is
A)the greater is the marginal product of labor relative to that of the marginal product of capital.
B)the greater is the substitutability between capital and labor.
C)the greater is the need to keep capital and labor in fixed proportions.
D)the greater is the level of output.

Question

Quizplus · Accepted Answer

The steepness of an isoquant reflects the rate at which labor can be substituted for capital (or vice versa) to produce the same level of output. A steeper isoquant indicates a higher marginal product of labor relative to the marginal product of capital, meaning that a small reduction in capital requires a large increase in labor to maintain the same level of output.

The Steeper an Isoquant Is