A firm's rate of technical substitution is represented graphically by
A) the slope of the line connecting the origin with the relevant point on the isoquant.
B) the negative of the slope of the line connecting the origin with the relevant point on the isoquant.
C) the slope of the isoquant at the relevant point.
D) the negative of the slope of the isoquant at the relevant point.
Correct Answer:
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Q17: If production is given by Q =
Q18: Suppose electricity (E)can be produced with coal
Q19: If Q = K1/3L2 the MPL is
A)constant
B)diminishing
C)increasing
Q20: If Q = K1/2L1/2 the MPL is
A)constant
B)increasing
C)diminishing
Q21: If more and more labor is employed
Q23: A fixed-proportion production function has isoquants that
Q24: The production function
Q25: Graphically,the average productivity of labor would be
Q26: A production function may exhibit
A)constant returns to
Q27: If,as a result of doubling all its
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