An Examination of the Production Isoquants in the Diagram Below

question 33

Multiple Choice

An examination of the production isoquants in the diagram below reveals that:

• A)capital and labor will be used in fixed proportions.
• B)Capital and labor are perfectly substitutable.
• C)the MRTS is constant.
• D)Both B and C are correct.
• E)none of the above

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Definitions:

Ethics

Moral principles that govern a person's behavior or the conducting of an activity.

Society's ATTitude

The collective opinions, values, and dispositions of a community or society towards particular topics or issues.

Market Values

The prevailing rate at which a good or service can be purchased or sold on the open market.

Right and Wrong

Ethical or moral principles that dictate what is considered just and unjust or good and bad behavior.