Multiple Choice
Suppose our firm produces chartered business flights with capital (planes) and labor (pilots) in fixed proportion (i.e., one pilot for each plane) . The expansion path for this business will:
A) increase at a decreasing rate because we will substitute capital for labor as the business grow.
B) follow the 45-degree line from the origin.
C) not be defined.
D) be a vertical line.
Correct Answer:

Verified
Correct Answer:
Verified
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