Refer to Figure 7.9. The slope of isocost AB is

A) greater than the slope of isocost CD.
B) less than the slope of isocost CD.
C) equal to the slope of isocost CD.
D) indeterminate from this information, as the prices of capital and labor are not given.

Slope

In mathematics and economics, the measure of the steepness or incline of a line, often used to describe changes in variables in relation to one another.

Isocost

A line representing all combinations of a firm's inputs that cost the same amount.

Capital

Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.