Multiple Choice
Suppose Diane's spa operates with the production function y = (1200z1z2) 2/3. Diane's production function exhibits
A) scale production cannot be determined
B) constant returns to scale
C) increasing returns to scale
D) decreasing returns to scale
Correct Answer:

Verified
Correct Answer:
Verified
Q18: The Marginal Rate of Technical Substitution is
Q19: If an industry is characterized by universal
Q20: Figure 7A<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3559/.jpg" alt="Figure 7A
Q21: If a firm's production function is f(z<sub>1</sub>,z<sub>2</sub>)=
Q22: A firm is currently producing 200 units
Q24: The demand for inputs is conditional on
Q25: An isocost line is defined as the
Q26: When long run average costs reach their
Q27: If the price of just one input
Q28: If a firm's production function is f(z<sub>1</sub>,z<sub>2</sub>)=