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  • ICAR and TNAU E-Course Summarized

    Summarized Notes
  • If two factors are perfect substitutes, isoquants will be

    Question: If two factors are perfect substitutes, isoquants will be

    Options:

    A straight line
    A parabola
    A rectangular hyperbola
    L shaped curve

    ✅ Explanation: Isoquants represent different combinations of two inputs that yield the same level of output. When two factors of production are perfect substitutes, it means they can be used interchangeably in the production process without affecting the output level. In this case, the isoquant will be a straight line with a constant slope, indicating that the rate at which one input can be substituted for the other remains constant along the isoquant.
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