K 6 isocost 3 L Based on the information in the graph aboive, what is the slope of the isocost line? slope = -2 If the price of capital remains the same and the price of labor decreases, the isocost line will become steeper. With the current mix of labor and capital, the marginal technical rate of subsitution is MRTS, =3. If the prices of L,K labor and capital remain as shown in the graph, then the firm will minimize the cost of production by increasing labor and decreasing capital

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