Assume That Capital Is Represented by the Vertical Axis and Labour

Multiple Choice

Assume that capital is represented by the vertical axis and labour is represented by the horizontal axis. The steeper an isoquant is:

A) The larger the marginal productivity of labour relative to that of capital.
B) The greater is the substitutability between capital and labour.
C) The larger the marginal productivity of capital relative to that of labour.
D) The greater is the budget available to the firm.