The Slope of an Isoquant Measures

question 150

Multiple Choice

The slope of an isoquant measures

• A)the price ratio of the two inputs.
• B)the average product of labor.
• C)the ratio of the marginal utility of the two inputs.
• D)the rate at which inputs can be substituted for each other keeping total output constant.

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Definitions:

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a business in producing its goods or services.

Marginal Cost

The increase in total cost that arises from producing an additional unit of output.

Lawn-mowing

The act of cutting the grass in a garden or lawn to maintain its appearance and health.

Perfectly Competitive

A market structure where many firms offer a homogeneous product, there are no barriers to entry or exit, and all firms are price takers.