An L-Shaped Isoquant

question 10

Multiple Choice

An L-shaped isoquant:

• A) is impossible.
• B) would indicate that the firm could switch from one output to another costlessly.
• C) would indicate that the firm could not switch from one output to another.
• D) would indicate that capital and labor cannot be substituted for each other in production.
• E) would indicate that capital and labor are perfect substitutes in production.

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