Question 1
Refer to the information provided in Figure 7.9 below to answer the question(s) that follow.
Refer to Figure 7.9. The slope of isocost
AB is
◦ greater than the slope of isocost
CD.
◦ less than the slope of isocost
CD.
◦ equal to the slope of isocost
CD.
◦ indeterminate from this information, as the prices of capital and labor are not given.
Question 2
Refer to the information provided in Figure 7.9 below to answer the question(s) that follow.
Refer to Figure 7.9. The slope of isocost
CD is
◦ greater than the slope of isocost
AB.
◦ less than the slope of isocost
AB.
◦ equal to the slope of isocost
AB.
◦ indeterminate from this information, as the prices of capital and labor are not given.