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The figure below displays two level curves from a firms production function. Assume that the marginal product of labor (L) and the marginal product of
The figure below displays two level curves from a firms production function. Assume that the marginal product of labor (L) and the marginal product of capital (K) are always positive. The bundle (L=2,K=2) falls on the q=1 level curve (i.e. all bundles on the curve result in one unit of output). The bundle (L=3, K=4) falls on the q=2 level curve. Which statement below is true?
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