Solved

When the Level of Capital Is Plotted on the Vertical W\mathrm { W }

Question 81

Multiple Choice

When the level of capital is plotted on the vertical axis and the level of labor is plotted on the horizontal axis, the slope of the isocost line is (assuming W\mathrm { W } is the price of labor and rr is the price of capital and production uses only these two inputs) :


A) w/r- w / r
B) r/w- r / w
C) MPK/1P1M P _ { K } / 1 P _ { 1 }
D) M1/MPKM _ { 1 } / M P _ { K }

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions