An isocost line shows all combinations of inputs that entail the same total cost. When graphed with

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An isocost line shows all combinations of inputs that entail the same total cost. When graphed with quantity of labor on the horizontal axis and quantity of capital on the vertical axis, the slope of an isocost line is minus the ratio of the price of labor to the price of capital.

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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