A construction company builds roads with machinery (capital, K) and labor (L) . If we plot the isoquants for the production function so that labor is on the horizontal axis, then a point on the isoquant with a small MRTS (in absolute value) is associated with high ________ use and low ________ use.
A) labor, capital
B) capital, labor
C) concrete, gravel
D) none of the above
Correct Answer:
Verified
Q85: Q86: A firm's marginal product of labor is Q87: Q88: The production function for Spacely Sprockets is Q89: A straight-line isoquant: Q91: Which of the following is NOT related Q92: You are currently using three printing presses Q93: The marginal rate of technical substitution is Q94: For Figure 6.9 in the book, MRTS Q95: Joe's Organic Cereal Company produces granola breakfast
A) is impossible.
B) would indicate
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