Question

13. Describe fixed proportions production.

Answer 1

Fixed proportions production is a production technology characterised by the feature that inputs are used in a specific proportion. For eg., to produce a shirt, one labor and one capital is used, to produce two shirts two labor and two capital are used thus the proportion of input usage is fixed. These production function exhibit constant returns to scale. The isoquant for this production function is L-shaped. Mathematically, this production is written as q=min(aL,bK) .