Isoquants from fixed-proportion production functions are
A)downward sloping.
B)shaped as right angles.
C)upward sloping.
D)shaped as horizontal lines.

Question

Quizplus · Accepted Answer

Isoquants from fixed-proportion production functions are shaped as right angles because fixed proportion technology produces output in a fixed ratio of inputs, leading to a constant substitution rate of factors of production. As a result, the isoquants are L-shaped, which means that one factor of production can be increased without any effect on output until a certain threshold is reached, after which an increase in the other factor is necessary to maintain output.

Isoquants from Fixed-Proportion Production Functions Are