Why Are the Slopes of Isocost Lines Constant

question 13

Multiple Choice

Why are the slopes of isocost lines constant?

• A) Firms must use capital and labor inputs in fixed proportions.
• B) Firms can hire as much of an input as they desire without changing wages or rental rates.
• C) Firms must use less labor if employing more capital.
• D) The marginal rate of technical substitution of labor for capital is constant.

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