Which of the Following Statements Is (Are) TRUE

question 134

Multiple Choice

Which of the following statements is (are) TRUE?
I. If labor and capital are perfect substitutes in production, the isoquant is a downward-sloping line.
II. If a company needs to use inputs in fixed proportion such that the capital to labor ratio is always 2, the firm's isoquants are L-shaped.
III. If the production function is given by Q = min(14, 7) , the firm can produce, at minimum, 21 units of output.

• A) I, II, and III
• B) I
• C) II
• D) I and II

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Definitions:

Planning Process

A series of steps followed to create strategies, allocate resources, and implement actions to achieve goals.

Participatory Planning

An approach to planning which involves stakeholders or community members in the decision-making process to better meet their needs and ensure more effective outcomes.

Conflict Over Scarce Resources

Disputes that arise due to limited availability of resources required by multiple parties.

Creativity

The ability to generate innovative ideas and solutions.