How many of the following statements are consistent with these isoquants? 10 T 4

Question

How many of the following statements are consistent with these isoquants? 10 T 4 3 2 2 4i 0 2 3 4 5 6 7 89 10 Capital q1 equals 10, q2 equals 20, q3 equals 30 and the production process displays global constant returns to scale. * The production process represents a moving company. In order to successfully move an individual, exactly 1 moving truck and 2 movers are required. The isoquants are generated from the production function f(L, K) = min(2L,4 · A. 1 B. 2 C. 3 D. None of the above statements are true.

Explanation / Answer

now if we consider statement 3 then as per this statement the ratio of K TO L

OR K/L = 1/2

THIS IS EXACTLY WHAT IS HAPPENING AT THE KINKS OF THE IC'S GIVEN ABOVE

SO STATEMENT 3 IS TRUE

SO ANSWER IS C

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