A firm has the production function f(x, y) = . The slope of the firm's isoquant at the point (x, y) = (40, 80) is (pick the closest one)
A) -0.50.
B) -4.
C) -0.25.
D) -8.
E) -0.25

Question

A firm has the production function f(x, y) =  . The slope of the firm's isoquant at the point (x, y) = (40, 80) is (pick the closest one)
A) -0.50. 
B) -4. 
C) -0.25. 
D) -8. 
E) -0.25

Quizplus · Accepted Answer

The slope of isoquant at point (x,y) is given by -∂f(x,y)/∂x / ∂f(x,y)/∂y. 
Substituting the production function, we get
-6x/y = -6(40)/80 = -3/4 = -0.75
Rounding off to nearest integer, we get the answer as -1. Hence, the closest option is answer choice D (-8).

A Firm Has the Production Function F(x, Y) =