When a Production Function Can Be Expressed as ,The

question 42

Multiple Choice

When a production function can be expressed as ,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 easily substituted, and the isoquants are convex to the origin.
• D) capital and labor are perfect substitutes, and the isoquants are L-shaped.