A fixed-proportion production function has isoquants that are
A) almost flat (i.e., the isoquants are almost straight lines).
B) L-shaped.
C) normally shaped (rectangular hyperbolas).
D) None of these.

Question

Quizplus · Accepted Answer

A fixed-proportion production function, also known as a Leontief production function, has L-shaped isoquants because inputs must be used in fixed proportions, and substituting one input for another is not possible.

A Fixed-Proportion Production Function Has Isoquants That Are