Assume that capital is represented by the vertical axis and labour is represented by the horizontal axis. The steeper an isoquant is
A) the larger the marginal productivity of labour relative to that of capital.
B) the greater is the substitutability between capital and labour.
C) the larger the marginal productivity of capital relative to that of labour.
D) the greater is the budget available to the firm.
Correct Answer:
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Q1: If both land and labour costs increased
Q2: Q4: A production isoquant is a function that Q6: The isocost line measures the different combination Q6: There are an infinite number of isocost Q7: An isocost line shows the different combination Q8: A firm's isoquant shows Q11: Any point where the isocost line cuts Q26: A production function may exhibit Q31: As a result of doubling all its
A) the amount of
A)constant returns to
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