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Assume Your Company Produces Good X Using Only Two Inputs,capital

Question 1

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 PK = $30 and PL = 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

Correct Answer:

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