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
Q1: (Figure: Capital and Labor XVI) Consider the
Q3: (Table: Capital and Labor XIV) Consider the
Q4: (Figure: Capital and Labor VI) Suppose a
Q5: For the production function Q(K,L) = 3K
Q6: (Table: Short-run Production I) The short-run production
Q7: (Table: Capital and Labor XIV) Consider the
Q8: (Figure: Production Function I) Which of the
Q9: (Table: Capital and Labor XIV) Consider the
Q10: (Figure: Capital and Labor XII) Which of
Q11: Capital cannot be adjusted in the short
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