The absolute value of the slope of an isoquant is equal to the ratio of the marginal products of the inputs.

Question

Quizplus · Accepted Answer

The absolute value of the slope of an isoquant, which represents the rate at which one input can be substituted for another while keeping output constant, is equal to the marginal rate of technical substitution (MRTS). The MRTS, in turn, is equal to the ratio of the marginal products of the inputs.

The Absolute Value of the Slope of an Isoquant Is