Question 15.

A firm's production function is

f(L, K) = min (L , 2K)

. This means that

a)

To reduce L by 1 unit the firm needs to increase K by 2 units to keep output constant.

b)

To reduce K by 1 unit the firm needs to increase L by 2 units to keep output constant.

c)

The fir

m can only use L and K in fixed proportions.

d)

L is less productive than K.

e)

None of the above is true