16) The marginal rate of technical substitution is 16) B) the slope of the isoco

Question

16) The marginal rate of technical substitution is 16) B) the slope of the isocost curve C) the slope of the isoutility curve D) the slope of the total product curve E) none of the above 25 the following is a characteristic of a typical isoquant with capital on the vertical axis and 17) labor on the horizontal axis? A) a change in input prices shifts the isoquant B) all input combinations on the isoquant will produce the same level of output C) the slope of the isoquan D) total cost is constant moving down the isoquant E) none of the above t increases in absolute value moving down the isoquant 18) As the firm's budget for capital and labor increases, ceteris paribus, the isocost line A) shifts to the right parallel to the original isocost line B) shifts to the left parallel to the original isocost line C) rotates to the right at the y-intercept D) rotates to the right at the x-intercept E) none of the above 19) If the price of labor is $4 and the price of capital is 516, what is the slope of the isocost with capital 19) on the vertical axis and labor on the horizontal axis? A)-0.25 B) -0.5 C)-2 D)-4 E) none of the above

Explanation / Answer

16) Ans- A - The slope of the Isoquant curve.

the MRTS shows the rate at which one input (e.g. capital or labor) may be substituted for another, while maintaining the same level of output. Thus the MRTS is the absolute value of the slope of an isoquant at the point in question.

Note - according to chegg guidelines we do only one question

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