For the production function f(z₁,z₂)= min(z₁,z₂), z₁and z₂are: A)imperfect complements. B)perfect complements. C)imperfect substitutes. D)inferior inputs.

Question

Quizplus · Accepted Answer

The production function is defined as the minimum of the two inputs, which means the output is limited by the lesser of the two inputs. This characteristic defines perfect complements, as the inputs are used together in fixed proportions to produce output.

For the Production Function F(z1,z2)= Min(z1,z2), Z1 and Z2 are

For the Production Function F(z₁,z₂)= Min(z₁,z₂), Z₁and Z₂are