The slope of an isoquant A. shows how output varies while keeping inputs constant. B. shows the firm's returns to scale. C. gives the substitutability of inputs while keeping output constant. D. is independent of the marginal product of capital.
Answer: C. gives the substitutability of inputs while keeping output constant.
Isoquant shows the different input combinations that will produce the same amount of output. Isoquant is also known as iso-product curve. Isoquant slopes downward from left to right (Negatively sloped). This shows that when one input is increased, the other one has to be decreased to produce the same level of output.
The slope of an isoquant A. shows how output varies while keeping inputs constant. B. shows...