-Which Graph in the Above Figure Represents the Isoquants Where

question 27

Multiple Choice

-Which graph in the above figure represents the isoquants where, as the amount of labor used increases and the amount of capital used decreases, the marginal product of labor rises (units of capital per day is on the vertical axis and units of labor per day is on the horizontal axis) ?

• A)Graph A
• B)Graph B
• C)Graph C
• D)Graph D

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Definitions:

Profit Maximizing

A method where businesses determine the price and output level that returns the greatest profit.

Fuel Sources

Materials or substances used to generate power or energy, typically to produce heat, light, or to power engines.

Inputs

Resources used in the production process, including labor, technology, and materials.

Economies Of Scale

Situation in which output can be doubled for less than a doubling of cost.