A fixed-proportion production function has isoquants that are
A)almost flat (i.e.,the isoquants are almost straight lines).
B)L-shaped.
C)normally shaped (rectangular hyperbolas).
D)None of the above.

Question

Quizplus · Accepted Answer

Fixed-proportion production functions, also known as Leontief production functions, have L-shaped isoquants. This shape reflects the fact that inputs must be used in fixed proportions to produce output; there are no substitutes.

A Fixed-Proportion Production Function Has Isoquants That Are