The slope of an isoquant measures
A)the price ratio of the two inputs.
B)the average product of labor.
C)the ratio of the marginal utility of the two inputs.
D)the rate at which inputs can be substituted for each other keeping total output constant.

Question

Quizplus · Accepted Answer

The slope of an isoquant shows how much of one input can be substituted for another input while keeping the level of output constant. Therefore, the correct choice is D, which refers to the rate of substitution. Choice A is a characteristic of the budget line or the isocost line, not the isoquant. Choice B is related to the concept of the production function, not the isoquant. Choice C reflects the principle of diminishing marginal rate of substitution, which is related to the slope of the indifference curve, not the isoquant.

The Slope of an Isoquant Measures