The Slope of a Firm's Isocost Line Is Equal to the Ratio

question 121

Multiple Choice

The slope of a firm's isocost line is equal to the ratio of

• A)the marginal products of its factors.
• B)the marginal rate of substitution between factors.
• C)the factor prices.
• D)total variable cost to total cost.
• E)product prices.

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Definitions:

Investing Activities

Financial transactions related to the purchase and sale of long-term assets and investments, as reported on a company's cash flow statement.

Net Cash

Net Cash refers to the amount of cash available after accounting for cash inflows and outflows.

Operating Activities

Activities that relate to the company's primary operations, such as sales, delivery of services, and production.

Net Cash

The net cash remaining following the calculation of cash incomes and expenditures.