A firm has the production function f(X, Y) = X/2 y!/2, where X is the amount of factor x used and Y is the amount of factor y used. On a diagram we put X on the horizontal axis and Y on the vertical axis. We draw some isoquants. Now we draw a straight line on the graph and we notice that wherever this line meets an isoquant, the isoquant has a slope of -3. The straight line we drew Select one: a. is vertical. O b. is horizontal. O c. is a ray through the origin with slope 3. O d. is a ray through the origin with slope 4. e. has a negative slope.

A firm has the production function f(X, Y) = X/2 y!/2, where X is the amount of factor x used and Y is the amount of factor y used. On a diagram we put X on the horizontal axis and Y on the vertical axis. We draw some isoquants. Now we draw a straight line on the graph and we notice that wherever this line meets an isoquant, the isoquant has a slope of -3. The straight line we drew Select one: a. is vertical. O b. is horizontal. O c. is a ray through the origin with slope 3. O d. is a ray through the origin with slope 4. e. has a negative slope.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 17P

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