The slope of an isoquant measures

Question

Quizplus · Accepted Answer

The slope of an isoquant measures the rate at which inputs can be substituted for each other while keeping the total output constant. This is because isoquants represent all the combinations of inputs that can produce a certain level of output, and the slope of an isoquant indicates how much of one input can be reduced when the quantity of the other input is increased to maintain that same output level. Therefore, option D is the best choice. Option A is not relevant as it refers to a price ratio, which is not related to the slope of an isoquant. Option B is incorrect as it refers to the average product of labor, which is not related to the slope of an isoquant. Option C is incorrect as it refers to the marginal utility of inputs, which is not related to the slope of an isoquant.

The Slope of an Isoquant Measures