Assume your company produces good X using only two inputs,capital (K)and labor (L).Also,assume L is measured on the vertical axis and K on the horizontal one.If the prices of inputs are P_K= $30 and P_L= 15,and your company is behaving efficiently,what is the slope of the isoquant at the current input mix?

Question

Quizplus · Accepted Answer

The slope of the isoquant at the current input mix is the ratio of the prices of labor to capital, which is -PL/PK. Given PL = $15 and PK = $30, the slope is -15/30 = -1/2.

Assume Your Company Produces Good X Using Only Two Inputs,capital