The Leontief production function implies:
A)Straight line isoquants.
B)Convex shaped isoquants.
C)A positive MRTS.
D)L-shaped isoquants.

Name: The Leontief production function implies: A)Straight line isoquants. B)Convex shaped isoquants. C)A positive MRTS. D)L-shaped isoquants.
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Question

Quizplus · Accepted Answer

The Leontief production function implies L-shaped isoquants because it assumes fixed proportions of inputs, meaning inputs are used in fixed ratios and cannot be substituted for one another.

The Leontief Production Function Implies