The slope of an isocost line ________ and equals the negative of ________. Select one: a....
The slope of an isocost line ________ and equals the negative of ________.
Select one:
a. increases as we move down the line; the ratio of input prices
b. is constant; the ratio of the marginal products
c. decreases as we move down the line; the ratio of the marginal products
d. is constant; the ratio of input prices
Homework Answers
The slope of an iso-cost line is constant and equals the negative of the ratio of input price.
Ans is d) is constant; the ratio of input prices
Explanation:
The slope of an isocost line is constant because firms can hire as much of an input as they desire without changing wages or rental rates and it is also equal to the negative of ratio of wages to the capital rental i.e, the ratio of input prices.
Add Answer to:
The slope of an isocost line ________ and equals the negative of
________.
Select one:
a....
QUESTION 4 The slope of an isocost line shows: the ratio of the marginal revenue product...
QUESTION 4 The slope of an isocost line shows: the ratio of the marginal revenue product of the inputs. O the ratio of marginal product of the inputs. the marginal rate of technical substitution. the ratio of the input prices. the output elasticity of production. QUESTION 5 If the marginal product per dollar spent on capital is less than the marginal product per dollar spent on labor, then in order to minimize costs the firm should use less capital and...
Which of the following statements about isocost lines is FALSE? A. their slope is given by...
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1 pts Question 10 Which of the following is most accurate about an isoquant? O The isoquant of a higher level of o...
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TUTORIAL2 Chapter 7 Part 1 Key Concepts and Equations: Production Isoquant: shows all combinations of input...
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The slope of the per-worker production function diminishes as the amount of capital per worker increases....
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Which one of the following is not a non-price determinant of supply? Select one: O a....
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Which one of the following is not a non-price determinant of supply? Select one: O a. Available production technology b. Consumers' income c. Resource prices d. The number of producers O o e. The price of related goods and services Another term for a negative relationship is Select one: O a. a fixed relationship O b. an inverse relationship c. a constant relationship d, a direct relationship e a marginal relationship.
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