Suppose Electricity (E)can Be Produced with Coal (C)or Gas (G)to

question 19

Multiple Choice

Suppose electricity (E) can be produced with coal (C) or gas (G) to operate steam turbines (T) .Suppose gas is more efficiently burned than coal but that they are otherwise perfect substitutes.E = ((G + 1/2C) ,T) The isoquants between gas and coal will be

• A) hyperbolas
• B) quarter circles
• C) straight lines
• D) rectangular

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