If Isoquants Are Drawn as Right Angles,it Implies

question 10

Multiple Choice

If isoquants are drawn as right angles,it implies:

• A)that the two inputs are perfect substitutes for each other.
• B)that the MRTS is constant.
• C)that the inputs must be used in fixed proportions.
• D)the isoquants can be intersecting.

---

Definitions:

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Stated Rate

The interest rate declared on a bond or other loan by the issuer, also known as the nominal or coupon rate.

Money

A medium of exchange that facilitates trade and is used as a measure of value and a store of wealth.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.