Refer to Figure 7.9. The slope of isocost CE is

A) -1/2.
B) -1.
C) -2.
D) indeterminate from this information, as the prices of capital and labor are not given.

Slope

A measure of the steepness or incline of a line, indicating the rate of change between two variables on a graph.

Isocost

A line representing all combinations of production factors that have the same total cost.

Capital

Refers to financial resources or assets owned by a business or individual that are used to generate wealth through investment or production.