Question: A widget manufacturer faces a fixed proportion production function such that two workers using one machine can produce 50 widgets. If you were to graph
A widget manufacturer faces a fixed proportion production function such that two workers using one machine can produce 50 widgets. If you were to graph theisoquantsfor q=50, q=100 and q=150, you would see that, regardless of input prices, the expansion path would be:
a.The vertical axis
b.A straight line connecting the points where L=2K
c.The horizontal axis
d.A straight line connecting the points where K=2L
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