Figure 6.8 When Labor Becomes More Expensive, the Isocost Line Becomes Steeper
When the price of labor increases from W = $10 to W = $20 and the price of capital stays constant at R = $20, the slope of the isocost changes from 
, or –1. The isocost line, therefore, becomes steeper, and the quantity of inputs the firm can buy for $100 decreases.
, or –1. The isocost line, therefore, becomes steeper, and the quantity of inputs the firm can buy for $100 decreases.