If isoquants are plotted on a graph with capital measured on the vertical axis and labor on the horizontal axis, then an increase in the wage rate will cause the isocost line Options: A . &nbspto become steeper and the optimal quantity of labor will decrease B . &nbspto become steeper and the optimal quantity of labor will increase C . &nbspto become flatter and the optimal quantity of labor will decrease D . &nbspto become flatter and the optimal quantity of labor will increase

If isoquants are plotted on a graph with capital measured on the vertical axis a

Question

If isoquants are plotted on a graph with capital measured on the vertical axis and labor on the horizontal axis, then an increase in the wage rate will cause the isocost line

Options:

A . to become steeper and the optimal quantity of labor will decrease

B . to become steeper and the optimal quantity of labor will increase

C . to become flatter and the optimal quantity of labor will decrease

D . to become flatter and the optimal quantity of labor will increase

Answer: Option A
:
A
If isoquants are plotted on a graph with capital measured on the vertical axis and labor on the horizontal axis, then an increase in the wage rate will cause the isocost lineto become steeper and the optimal quantity of labor will decrease.

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