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Suppose that a firm's production function is q = 10LK. Consider the following combinations of Labour and Capital: (1, 36), (4, 9), (6, 6), (9,
Suppose that a firm's production function is q = 10LK. Consider the following combinations of Labour and Capital: (1, 36), (4, 9), (6, 6), (9, 4) and (36, 1) where the first number in each case refers to L and the second refers to K. Which of the following statements is true?
A. | K and L are perfect substitutes | |
B. | K and L are imperfect substitutes | |
C. | K and L are perfect complements | |
D. | None of the above is true |
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