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Assume the cost of capital is $10 per unit and the firm is spending $5,000 in total. Which of the following is true? I. At

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Assume the cost of capital is $10 per unit and the firm is spending $5,000 in total. Which of the following is true?

I. At point D, the slope of the isoquant is greater than 5 in absolute value

II. At point C, the slope of the isoquant is greater than 4 in absolute value

III. At point E, the slope of the isoquant is greater than 5 in absolute value

I and III

I, II, and III

III only

II only

I and II

I only

II and III

image text in transcribed
500 300 C Units of Capital A D B E q4 = 600 93 = 450 q2 = 300 q1 - 150 75 125 Units of Labor

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