Ch 8 - Screencast 8.1 - The slope of the isoprofit curve

Based on Chapter 8 of Bowles and Halliday (2022), we explain how to understand the firm's isoprofit curve and how to find its slope. The slope of the firm's isoprofit curve gives us the firm's marginal rate of substitution--the rate at which it is willing to pay to reduce price to increase quantity sold. We show later how the firm will make its decision on how much to sell when we consider the constraint of the demand curve.