Assume Your Company Produces Good X Using Only Two Inputs

Multiple Choice

Assume your company produces good X using only two inputs, capital (K) and labor (L) . Also, assume L is measured on the vertical axis and K on the horizontal one. If the prices of inputs are P_K=$30 and P_L=15, and your company is behaving efficiently, what is the slope of the isoquant at the current input mix?

A) -2
B) -1/2
C) 2
D) 1/2