--%>
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 : Marketing in action Which of the

    Which of the following are examples of public goods?

    		•
  • Q : Characteristic of an oligopolistic

    Which of the given is a quality of an oligopolistic market structure? w) There are only some dominant sellers. x) every firm sells a unique product. y) this is easy for new firms to enter the industry. z) Each firm require not react to the actions of

    		•
  • Q : Describe financial leverage and low

    Describe briefly high financial leverage, low operating leverage?

    		•
  • Q : Illustrations of opportunity costs

    Illustrations of opportunity costs which you might or will have incurred would comprise: (i) severe injuries suffered within an accident since you failed to buckle up. (ii) the income you could earn when you were not in school. (iii) time spent studyi

    		•
  • Q : Why is the problem of unemployment a

    Why is the problem of unemployment a part of the subject matter of economics?

    		•
  • Q : Define the Legal forms of businesses

    Define the Legal forms of businesses?

    		•
  • Q : Analysis of US GDP and GDP growth rate

    You may use a calculator and MINITAB to conduct the necessary calculations for all questions.  Analysis of US GDP and GDP growth rate (1959-2004). The following variables can be retrieved from MIN

    		•
  • Q : Economic crisis situation in Europe

    Question: Describe the present economic crisis situation in Europe.   Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world i

    		•
  • Q : What is the opportunity cost of

    What is the opportunity cost of attending college?  In 2000, nearly 80% of college-educated Americans held jobs, whereas only about 40% of those who did not finish high school held jobs.  How might this difference relate to opportunity costs?

    		•
  • Q : Explain the Trade pattern of U.S. and

    Explain the Trade pattern of U.S. and World Trade?

    		•