b output, labor c capital, labor QUESTION 7 Figure 2 Capital Capital Graph M abo

Question

b output, labor c capital, labor QUESTION 7 Figure 2 Capital Capital Graph M abor Refer to Figure 2. Which of the two graphs shows a better substitution of labor for capital a Both have the same subsitution b. GraphZ c. Graph M QUESTION 8 If we take the production function and hold the level of output constant, allowing the amounts of capital and labor to vary, the curve that is traced out is called: b. the total product c.the average product ed. the marginal product QUESTION 9 Chick Save and Subnit to save and submit. Click Save All Ansuvers to save all answers. ch ?

Explanation / Answer

8. Ans: Graph M

Explanation:

In graph M, MRTS is decreasing. But in graph Z, MRTS is constant. Better substitution is when MRTS is decreasing.

9. Ans: Isoquant

Explanation:

An Isoquant represents all those combination of labor and capital which produces same quantity of output.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.