Multiple Choice
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.
A) I, II, and III
B) I
C) II
D) I and II
Correct Answer:
Verified
Correct Answer:
Verified
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