Refer to Figure 7.9. The slope of isocost AB is

A) -1.
B) 0.
C) 1.
D) indeterminate from this information, as the prices of capital and labor are not given.

Slope

In mathematics, the steepness or incline of a line on a graph, representing the rate of change of variables.

Isocost

Represents lines on a graph showing combinations of inputs that cost the same amount.

Capital

Capital refers to financial assets or the financial value of assets, such as cash and buildings, used by a business to produce goods and services.