--%>
Assignment Help - homework help

Production function for the game

Question

Can you describe what the production function for the game looks like? (How are labour, capital and resources combined? Are there constant, increasing or decreasing returns to scale?)

Answer

The production function of the game is a fixed proportions production function. Let's first state directly from the rules about the requirements of production:

"A road costs one wood and one brick.

Cities cost three grain and two ore.

Settlements cost one brick, one wood, one grain and one sheep to build.

By paying one sheep, one grain, and one ore, a player can draw a card from the top of the development deck."

Here, we see that road costs one wood and one brick. Similarly, for cities, the input requirements are fixed. This reflects that the input requirements are fixed and specific. A road cannot with built by using wood only; it would require brick as well. Therefore, it is a fixed proportion production function.

There are constant returns to scale in this game, as the fixed proportion production function means that in order to build a city you need three grain and two ore and in order to build 3 cities, you need nine grain and six ore.

   Related Questions in Business Economics

  • Q : Illustrate and clarify the economizing

    Illustrate and clarify the economizing problem?

    		•
  • Q : Introduction of the term net present

    Give a brief introduction of the term net present value? Write down its admittable rules, their merits and demerits?

    		•
  • Q : Prices are the automatic regulator

    “Prices are the automatic regulator that tends to keep production and consumption in line with each other.”  Explain.

    		•
  • Q : Problem on Legislature budget XY School

    XY School District has a large number of students in need of remedial instruction. The superintendent of XY School System can allocated her budget between purchasing X units of remedial instruction at a price of $2,000/unit and spending an amount ($Y) on all other sch

    		•
  • Q : Equilibrium market rate & Undervalued

    Question: a. In the short-run, it is easier for a country to maintain a peg that undervalues a currency (relative to the equilibrium market rate) than it is to maintain a peg that overvalues the currency (relative

    		•
  • Q : Heterodox approach for more production

    From the heterodox approach, what options does the enterprise need to produce more output? What effect do these options put on its cost structure?

    		•
  • Q : Innate psychological attributes of

    As illustrated by Adam Smith that there are two innate psychological attributes of humans. One is which people have a powerful wish to better their individual circumstances. The other is as human beings so we are: (1) more interested

    		•
  • Q : Distinguish between allocative

    Distinguish between allocative efficiency and productive efficiency. Give an illustration of achieving productive, but not allocative, efficiency?

    		•
  • Q : Capitalism-Tightly regulate business I

    I have a problem in economics on Capitalism-Tightly regulate business. Please help me in the following question. The govt. in a purely capitalist state would not: (1) Find out the property rights. (2) Enforce contracts among private parties. (3) Offer

    		•
  • Q : Elucidate the growth record of the

    Elucidate the growth record of the United States?

    		•