Which of the Following Are True in a Graph of Isoquants

question 11

Multiple Choice

Which of the following are true in a graph of isoquants (with capital on the vertical and labor on the horizontal) assuming a given wage and rental rate.

• A)All long-run cost minimizing input bundles lie on a ray from the origin.
• B)(a) is true only if the production technology is homothetic.
• C)All short-run cost minimizing input bundles lie on a horizontal line.
• D)(c) is true only if the production technology is homothetic.
• E)(a) and (c) are true.
• F)(b) and (c) are true.
• G)(a) and (d) are true.
• H)None of the above.

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Definitions:

Factor Rating

A method used in decision-making that involves assigning weightings to different factors or criteria and rating options to prioritize or select the best choice.

Labour Climate

The overall environment that affects the relationship, practices, and conditions under which employees work in a particular area or industry.

Taxes

Mandatory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.