Question

With capital on the vertical axis and labor on the horizontal axis, vertical isoquants imply that Question 18 options: A) capital and labor must be used together in a fixed proportion. B) capital and labor are perfect substitutes. C) capital is not productive. D) labor is not productive.

Answer 1

capital is not productive.

Step-by-step explanation:

An isoquant is defined as a business's version of an individual's indifference curve. It shows all combinations of two inputs that will yield the same output.

A break down of the name iso means equal to, while quant is for quantity. That is equal quantity.

Usually capital is on the y axis while labour is on the x axis.

As shown in the attached diagram, if isoquant is vertical, it means that labour used is the same at all levels of capital. So capital is not productive. Wether small capital is used or large capital of does not affect productivity.