What is an isoquant? What is the slope of an isoquant?
What will be an ideal response?
An isoquant is a curve that shows all the combinations of two inputs, such as capital and labor, that will produce the same level of output. Its slope is the rate at which a firm can substitute one input for the other while keeping output constant, or the marginal rate of technical substitution (MRTS).
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According to Figure 6.1, the period from 1974 to 1995 is particularly remarkable for the slow growth of ________
A) output per worker B) labor input C) output D) capital input
The basic activity of a firm is
A) to set the prices of its products as high as possible. B) to compete with other firms that produce similar products. C) to provide jobs for its employees. D) to use inputs to produce outputs of goods and services.