An L-shaped isoquant:
A) is impossible.
B) would indicate that the firm could switch from one output to another costlessly.
C) would indicate that the firm could not switch from one output to another.
D) would indicate that capital and labor cannot be substituted for each other in production.
E) would indicate that capital and labor are perfect substitutes in production.

Question

Quizplus · Accepted Answer

An L-shaped isoquant indicates that capital and labor cannot be substituted for each other in production, meaning the production process requires a fixed proportion of capital and labor.

An L-Shaped Isoquant