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Let a Firm Use Labor (L)( L ) And Capital (K)( K )

Question 26

Multiple Choice

. Let a firm use labor (L) ( L ) and capital (K) ( K ) as its only inputs to produce an output, QQ . The cost of labor is w=$5w = \$ 5 per labor hour and the cost of capital is r=$15r = \$ 15 per machine hour. When capital is measured on the vertical axis and labor on the horizontal axis, what is the slope of an isocost line for this firm?


A) 3- 3 .
B) 5- 5 .
C) 15- 15 .
D) 1/3- 1 / 3 .

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