When a Production Function Can Be Expressed As $$Q = ( a K ) ( b L )$$

question 98

Multiple Choice

When a production function can be expressed as $$Q = ( a K ) ( b L )$$ the relationship between capital and labor in the production function is that:

• A)capital and labor are perfect substitutes, and the isoquants are linear.
• B)capital and labor must be combined in fixed proportions, and the isoquants are L-shaped.
• C)capital and labor are substitutable, and the isoquants are convex to the origin.
• D)capital and labor are perfect substitutes, and the isoquants are L-shaped.