Question

what is the meaning of isocost slope? Provide a mathematical explanation.

Answer 1

The slope of an iso-cost line is equal to the slope of an isoquant since the slope of an isoquant tells the firm how much capital is needed to replace a unit of labor to maintain the output while the slope of an iso-cost line shows the relative price of the inputs.

$slope=W/r$

Where W is price of labour

r is the price of capital