Question

Q5.
If an iso-quant is linear and touches both axis, it indicates
1. Perfect substitutability of factors 2. Zero
substitutability of factors 3. Limited substitutability of
factors​

Answer 1

Answer:

Perfect Substitutability of factors

Answer 2

If an iso-quant is linear and touches both axes, it indicates the perfect substitutability of factors.

An isoquant curve is an inward formed line on a diagram, utilized in the investigation of microeconomics, that outlines every one of the elements, or information sources, that produce a predetermined degree of the result. This diagram is utilized as a measurement for the impact that the sources of info most generally, capital and work have on the reachable degree of result or creation. The isoquant bend helps organizations and organizations in making changes in accordance with contributions to amplify creation, and subsequently benefits.