The rate at which one input can be substituted for another is shown by
A) The slope of a firm's production function
B) The slope of a firm's efficient production frontier
C) The shape of a firm's isoquants
D) The shape of a firm's production function

Question

Quizplus · Accepted Answer

The rate at which one input can be substituted for another is represented by the slope of isoquants, which show all the possible combinations of inputs that can produce a given level of output. As we move downward and to the right along an isoquant, we can see that one input is being substituted for another in order to maintain the same level of output. Therefore, the shape of a firm's isoquants is the best representation of the rate at which one input can be substituted for another.

The Rate at Which One Input Can Be Substituted for Another