When a Production Function Can Be Expressed As $Q = ( a K ) ( b L )$

question 35

Multiple Choice

When a production function can be expressed as $Q = ( a K ) ( b L )$ , 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 substitutable, and the isoquants are convex to the origin.
• D) capital and labor are perfect substitutes, and the isoquants are L-shaped.

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