Homework Answers
1 - Option D
Ratio of the input prices
The isocost curve slope shows the ratio of the price of the factor.
The other options do not depict the slope of isocost curve.
2 - Option A
Less capital and more labor.
This is because the marginal product per dollar is less in capital than labor. Hence more labour should be employed.
3 - Option B
Its price falls.
If the price of the inputs used in production will fall , and they are hired at that time this will decrease the cost of production and minimise costs.
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a firm can minimize cost by using the combination of
inputs
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#3
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