Answered

Discover the answers you need at Westonci.ca, where experts provide clear and concise information on various topics. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Suppose our firm produces chartered business flights with capital​ (planes) and labor​ (pilots) in fixed proportion​ (i.e., one pilot for each​ plane). The expansion path for this business will A. follow the​ 45-degree line from the origin. B. increase at a decreasing rate because we will substitute capital for labor as the business grows. C. not be defined. D. be a vertical line.

Sagot :

Answer:

A. follow the​ 45-degree line from the origin

Explanation:

In order to diversify the business that means the output level should be increased we need to rise the input i.e. no of planes and pilots

Now if we increase the no of planes by 1 so here the no of pilots should also be increased by 1 units

So the expansion path equation is y = x

Therefore the option a is correct

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.