Which of the following are true in a graph of isoquants (with capital on the vertical and labor on the horizontal) assuming a given wage and rental rate.
A)All long-run cost minimizing input bundles lie on a ray from the origin.
B)(a) is true only if the production technology is homothetic.
C)All short-run cost minimizing input bundles lie on a horizontal line.
D)(c) is true only if the production technology is homothetic.
E)(a) and (c) are true.
F)(b) and (c) are true.
G)(a) and (d) are true.
H)None of the above.

Question

Quizplus · Accepted Answer

The Answer of Which of the following are true in a graph of isoquants (with capital on the vertical and labor on the horizontal) assuming a given wage and rental rate.
A)All long-run cost minimizing input bundles lie on a ray from the origin.
B)(a) is true only if the production technology is homothetic.
C)All short-run cost minimizing input bundles lie on a horizontal line.
D)(c) is true only if the production technology is homothetic.
E)(a) and (c) are true.
F)(b) and (c) are true.
G)(a) and (d) are true.
H)None of the above.

Which of the Following Are True in a Graph of Isoquants