A Firm Uses Capital and Labor to Produce an Output

question 27

Multiple Choice

A firm uses capital and labor to produce an output. The absolute value of the slope of the isocost line equals:

• A)the ratio of the marginal productivities of the inputs.
• B)the ratio of the output prices.
• C)the ratio of the input prices.
• D)the ratio of capital to labor.

---

Definitions:

Acupuncture

A traditional Chinese medicine technique involving the insertion of needles into specific points on the body to relieve pain or treat various health conditions.

CAM

Stands for Complementary and Alternative Medicine, which includes diverse medical practices and products not traditionally part of conventional medicine.

Asian American

A person of Asian descent residing in America, including people from East Asia, Southeast Asia, and the Indian subcontinent.

European American

An individual in the United States who identifies as having origins from any of the original peoples of Europe.