If the isoquants are straight lines, then:
A) inputs have fixed costs at all use rates.
B) the marginal rate of technical substitution of inputs is constant.
C) only one combination of inputs is possible.
D) there are constant returns to scale.

Question

Quizplus · Accepted Answer

Straight line isoquants indicate a constant marginal rate of technical substitution (MRTS), meaning that the ratio at which inputs can be substituted for each other remains constant regardless of the quantity of outputs produced. Therefore, B is the best choice.

If the Isoquants Are Straight Lines, Then