Question 1
A graph showing all the combinations of capital and labor that can be used to produce a given amount of output is a(n)
◦ indifference curve.
◦ isoquant.
◦ isocost line.
◦ production function.
Question 2
Refer to the information provided in Figure 7.7 below to answer the question(s) that follow.
Refer to Figure 7.7 above. If Roller Skates Unlimited moves from isoquant
A to isoquant
B, the number of roller skates produced
◦ decreases.
◦ increases.
◦ remains constant, but Roller Skates Unlimited uses more capital and more labor.
◦ remains constant, but input prices have risen.
Operations Management question
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