An Isoquant Map,with Labor on the Horizontal Axis and Capital

question 36

Multiple Choice

An isoquant map,with labor on the horizontal axis and capital on the vertical axis,has horizontal isoquants.This implies that the:

• A)marginal product of capital is zero.
• B)marginal rate of substitution of capital for labor approaches infinity.
• C)marginal product of labor is zero.
• D)marginal rate of substitution of capital for labor is positive.

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Definitions:

Equally Affordable

A condition where different goods or services have the same cost in terms of their value to a consumer, making them equally desirable.

Indifference Curves

Graphical representations in economics showing different combinations of two goods among which a consumer is indifferent in terms of utility or satisfaction.

Right Gloves

Garments designed specifically for the right hand, typically used for protection, warmth, or fashion.

Indifference Curves

A graph showing combinations of two goods that give a consumer equal satisfaction and utility, reflecting preferences.