If the Isoquants Are Straight Lines, Then

question 72

Multiple Choice

If the isoquants are straight lines, then:

• A) inputs have fixed costs at all use rates.
• B) the marginal rate of technical substitution of inputs is constant.
• C) only one combination of inputs is possible.
• D) there are constant returns to scale.

---

Definitions:

Undeclared Dividends

These are dividends that have been earned by shareholders but have not yet been officially announced by the company.

Cumulative

An adjective describing quantities or changes that are added together sequentially over time.

Corporate Capital Structure

Refers to the mix of different types of securities issued by a corporation to finance its operations, typically involving a combination of debt and equity.