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Suppose Our Firm Produces Chartered Business Flights with Capital (Planes)

Question 153

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.

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