The Slope of an Isoquant Measures

question 20

Multiple Choice

The slope of an isoquant measures

• A)the average capital/labour ratio.
• B)the ratio of prices of goods.
• C)the ratio of prices of inputs.
• D)the marginal rate of (technical)substitution between factors.
• E)the marginal cost of a given level of output.

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Definitions:

Market Development

A business growth strategy focusing on increasing sales of existing products to new markets or demographic segments.

Diversification

The strategy of increasing the variety of products or markets to reduce risk.

Diversification

The strategy of entering into new markets or creating new products to spread and reduce risks.

Product-Market Evolution

describes the dynamic changes and development in how a product interacts with its market, including growth, competition, and consumer preferences over time.