The production function for hamburgers can be written as q = 0.1X + 0.1Y,where X is Canadian ground beef and Y is U.S.beef,both measured in pounds.Which graph in the figure best represents the isoquants for the hamburger production when U.S.ground beef is on the vertical axis and Canadian ground beef is on the horizontal axis?
A)Graph A
B)Graph B
C)Graph C
D)Graph D

Question

Quizplus · Accepted Answer

In the isoquant map, the slope of the isoquant represents the technical rate of substitution (TRS). As the TRS between Canadian and US beef is unity, the isoquant curve should be a straight line emanating from the origin. Graph C represents this situation where the isoquant curves are straight lines. On the other hand, the isoquant curves in graphs A, B, and D are bowed, indicating that the TRS is changing with the mix of inputs, which violates the assumption of constant TRS. Therefore, the best choice is C.

The Production Function for Hamburgers Can Be Written as Q