Refer to the information provided in Figure 7.9 below to answer the questions that follow. Figure 7.9
-Refer to Figure 7.9. The general formula for the slope of any of the isocost lines is
A) -PK/PL.
B) -PL/PK.
C) TC/PL.
D) TC/PK.

Question

Refer to the information provided in Figure 7.9 below to answer the questions that follow.  Figure 7.9
-Refer to Figure 7.9. The general formula for the slope of any of the isocost lines is
A) -PK/PL. 
B) -PL/PK. 
C) TC/PL. 
D) TC/PK.

Quizplus · Accepted Answer

The slope of an isocost line is given by the negative ratio of the prices of the inputs, which is -PL/PK, where PL is the price of labor and PK is the price of capital.

Refer to the Information Provided in Figure 7