The opportunity cost of leisure is approximated by:

a. the price of leisure activities (such as theater tickets).
b. an individual's hourly real wage rate.
c. commuting expense.
d. an individual's total income.

b

Economics

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A firm has the following production function:

q = (L1/3 + K1/3)3 a. Determine the returns to scale for this function. b. Determine the MRTS. c. Determine the Elasticity of Substitution.

Economics