A production function in which the inputs are perfectly substitutable would have isoquants that are:
A) convex to the origin.
B) L-shaped.
C) linear.
D) concave to the origin.

Question

Quizplus · Accepted Answer

If the inputs are perfectly substitutable, then they can be easily interchanged with each other without affecting the production output. This means that the isoquants would be linear, as the tradeoff between the two inputs can be represented by a constant slope. Therefore, the correct answer is C - linear.

A Production Function in Which the Inputs Are Perfectly Substitutable