A Firm Has the Production Function F(X, Y)= X ^1/2

question 24

Multiple Choice

A firm has the production function f(X, Y) = X ^1/2 Y ^1/2, where X is the amount of factor x used and Y is the amount of factor y used.On a diagram we put X on the horizontal axis and Y on the vertical axis.We draw some isoquants.Now we draw a straight line on the graph and we notice that wherever this line meets an isoquant, the isoquant has a slope of 23.The straight line we drew

• A)is vertical.
• B)is horizontal.
• C)is a ray through the origin with slope 3.
• D)is a ray through the origin with slope 4.
• E)has a negative slope.

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