The absolute value of the slope of the isoquant is the:
A) marginal rate of technical substitution.
B) marginal product of capital.
C) marginal rate of substitution.
D) value marginal product of labor.

Question

Quizplus · Accepted Answer

The absolute value of the slope of an isoquant is the ratio of the marginal products of the two inputs used to produce a constant level of output. This ratio is known as the marginal rate or technical substitution (MRTS) and represents the amount by which one input must be reduced as the other is increased, so that output remains constant.

The Absolute Value of the Slope of the Isoquant Is