An isoquant map,with labor on the horizontal axis and capital on the vertical axis,has horizontal isoquants.This implies that the:
A)marginal product of capital is zero.
B)marginal rate of substitution of capital for labor approaches infinity.
C)marginal product of labor is zero.
D)marginal rate of substitution of capital for labor is positive.

Question

Quizplus · Accepted Answer

Horizontal isoquants represent constant output levels, which means that adding more labor or capital does not increase output. Therefore, the marginal product of labor and capital is zero. However, since labor is on the horizontal axis, it is the marginal product of labor that is particularly relevant here. Thus, choice C is the correct answer.

An Isoquant Map,with Labor on the Horizontal Axis and Capital