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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.


Definitions:

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A type of mortgage where the borrower offers property as security for the loan, beyond the purchased property itself.

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