Long-Run Production: Two Variable Inputs

-Lectures in microeconomics can be delivered either by an instructor (labor)or a movie (capital)or any combination of both.Yet the it gets harder and harder to substitute more movies for an instructor the more movies are already used.Which graph in the above figure best represents the isoquants for lectures in microeconomics when capital per day is on the vertical axis and labor per day is on the horizontal axis?
A) Graph A
B) Graph B
C) Graph C
D) Graph D

Question

Long-Run Production: Two Variable Inputs

-Lectures in microeconomics can be delivered either by an instructor (labor)or a movie (capital)or any combination of both.Yet the it gets harder and harder to substitute more movies for an instructor the more movies are already used.Which graph in the above figure best represents the isoquants for lectures in microeconomics when capital per day is on the vertical axis and labor per day is on the horizontal axis?
A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D

Quizplus · Accepted Answer

The statement suggests that the substitutability between labor and capital decreases as more capital is used. This means that the isoquants should become flatter as we move down and to the right. Graph B shows this pattern, while the other graphs show either the opposite pattern (Graph A), or increasing substitutability (Graph C and D).