Quantity of capital (million S)$20$10100200Quantity of labor (person-years)line abline acline bcnone of aboveIsoquant II(200,000keyboards)Isoquant(100,000keyboards)FIGURE 4-1 Isoquants for a Fixed-Coefficient Production TechnologyWith constant returns to scale, the isoquants will be L-shaped and the production functionwill be the straight line through their minimum-combination points.According to Figure 4-1, which line refers to the most efficient input mix forproduction?

The complement inputs are used in the fixed proportion. These inputs are used jointly.

Answered: Quan $10 FIGURE 4-1 Isoquants fo With…

Quan $10 FIGURE 4-1 Isoquants fo With constant returns to s will be the straight line thr line ab line ac line bc ccording to Figure 4-1, v oduction?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 21PAE

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Question

Quantity of capital (million S)
$20
$10
100
200
Quantity of labor (person-years)
line ab
line ac
line bc
none of above
Isoquant II
(200,000
keyboards)
Isoquant
(100,000
keyboards)
FIGURE 4-1 Isoquants for a Fixed-Coefficient Production Technology
With constant returns to scale, the isoquants will be L-shaped and the production function
will be the straight line through their minimum-combination points.
According to Figure 4-1, which line refers to the most efficient input mix for
production?

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