Multiple Choice
Why are the slopes of isocost lines constant?
A) Firms must use capital and labor inputs in fixed proportions.
B) Firms can hire as much of an input as they desire without changing wages or rental rates.
C) Firms must use less labor if employing more capital.
D) The marginal rate of technical substitution of labor for capital is constant.
Correct Answer:
Verified
Correct Answer:
Verified
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