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When a Production Function Can Be Expressed As Q=(aK)(bL)Q = ( a K ) ( b L )

Question 98

Multiple Choice

When a production function can be expressed as Q=(aK) (bL) Q = ( a K ) ( b L ) the relationship between capital and labor in the production function is that:


A) capital and labor are perfect substitutes, and the isoquants are linear.
B) capital and labor must be combined in fixed proportions, and the isoquants are L-shaped.
C) capital and labor are substitutable, and the isoquants are convex to the origin.
D) capital and labor are perfect substitutes, and the isoquants are L-shaped.

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