The Production Function F(z₁,z₂)= Min(z₁,z₂)exhibits

question 88

Multiple Choice

The production function f(z₁,z₂) = min(z₁,z₂) exhibits:

• A)constant returns to scale.
• B)initially increasing, and subsequently decreasing returns to scale.
• C)increasing returns to scale.
• D)decreasing returns to scale.

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Definitions:

Straight-Line Amortization

A method of uniformly reducing the book value of an intangible asset over its useful life.

Interest Expense

The expenditure faced by a company for financing through borrowed resources during a defined time.

Book Value

The value of a fixed asset, as recorded on a balance sheet, which represents its historical cost minus accumulated depreciation.

Debentures

A type of long-term debt instrument used by large companies to borrow money, at a fixed rate of interest, and not secured by physical assets or collateral.