The steeper an isoquant is,
A) the greater is the marginal productivity of labor relative to that 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

A steeper isoquant indicates that a small reduction in capital requires a large increase in labor to maintain the same level of output, reflecting a higher marginal productivity of labor relative to capital.

The Steeper an Isoquant Is