103k views
13 votes
L-shaped isoquants describe production systems in which inputs are perfect substitutes. Is this statement correct or not and why?

1 Answer

8 votes

Answer: False

Step-by-step explanation:

An isoquant is a simply a curve or a graphical representation of the inputs that are required to yield identical output levels. An isoquant simply means quantity of output that is constant.

L-shaped isoquants describing production systems in which inputs are perfect substitutes is false. It is used to describe scenarios whereby the inputs in question are complements.

User Ahmer
by
7.5k points