# Capital are measured on the vertical units of 91 48

• No School
• AA 1
• 7

This preview shows page 5 - 7 out of 7 pages.

capital are measured on the vertical axis: 93 = 108 Units of Capital 92 = 75 91 = 48 90 = 24 0 5 10 15 20 25 Units of Labor 30 35 40 45 50 Figure Description: Units of labor are measured on the horizontal axis and units of capital are measured on the vertical axis. Four downward-sloping isoquant curves are provided. The first isoquant curve, closest to the origin, is labeled o = 24. Shifted to the right of this first isoquant curve, the second isoquant curve is labeled
91 = 48. Shifted to the right of this second isoquant curve, the third isoquant curve is labeled 92 = 75. Shifted to the right of this third isoquant curve, the fourth isoquant curve is labeled 3 = 108. Each of the four provided isoquant curves are downward sloping and continuous. None of the isoquant curves intersect and average production plans are preferred to extremes. 91 = 48 90 = 24 0 5 10 15 20 25 30 35 40 45 50 Units of Labor Figure Description: Units of labor are measured on the horizontal axis and units of capital are measured on the vertical axis. Four downward-sloping isoquant curves are provided. The first isoquant curve, closest to the origin, is labeled o = 24. Shifted to the right of this first isoquant curve, the second isoquant curve is labeled 91 = 48. Shifted to the right of this second isoquant curve, the third isoquant curve is labeled q2 = 75. Shifted to the right of this third isoquant curve, the fourth isoquant curve is labeled 43 = 108. Each of the four provided isoquant curves are downward sloping and continuous. None of the isoquant curves intersect and average production plans are preferred to extremes. Question: Which assumption on production plans do the isoquant curves violate? Monotonicity Completeness Transitivity None of the above Convexity

#### You've reached the end of your free preview.

Want to read all 7 pages?

• Fall '19
• Cartesian product, Euclidean geometry, Isoquant Curves, Transitivity Completeness Convexity Monotonicity

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern