Questions
ECON3200001.1251 Homework Assignment 7
Single choice
If labor and capital are perfect complements in production, the isoquant is a downward-sloping line
Options
A.False
B.True
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Step-by-Step Analysis
The question asks about the shape of the isoquant when labor and capital are perfect complements in production.
Option 1: False. When inputs are perfect complements, they are used in fixed, constant proportions. This leads to an isoquant tha......Login to view full explanationLog in for full answers
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Similar Questions
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Which of the following statements is (are) TRUE? I. If labor and capital are perfect substitutes in production, the isoquant is a downward-sloping line. II. If a company needs to use inputs in fixed proportion such that the capital to labor ratio is always 2, the firm's isoquants are L-shaped. III. If the production function is given by Q = min(14, 7), the firm can produce, at minimum, 21 units of output.
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