--%>
Assignment Help - homework help

What are the certain assumptions in production functions

What are the certain assumptions in production functions?

E

Expert

Verified

The production functions are based upon exact assumption as follows:

a. Ideal divisibility of inputs and output both;

b. Restricted substitution of one factor for the others and

c. Constant technology; and

d. Inelastic supply of fixed factors within the short run.

   Related Questions in Managerial Economics

  • Q : Investment in Specific Human Capital An

    An investment in specific human capital arises while: (w) Chandra learns Japanese to be eligible for a potential job in Tokyo. (x) Chele has a face lift so she can increase her fees for high-fashion modeling. (y) Chelsea practices playing a harp and a

    		•
  • Q : Illustrates the significance of

    Illustrates the significance of elasticity?

    		•
  • Q : Forecasting demand what are the

    what are the criteria for good forecasting

    		•
  • Q : Illustration of specific training The

    The knowledge gained while an Apple employee learns a specialized technique on an iPod assembly line is an illustration of: (w) comparative technological advantage. (x) specific training. (y) on-the-job leveraging. (z) general training.

    Q : Unexpected increases in national income

    A firm is probably to reduce the number of workers this employs when there are: (i) reductions in the wage rate. (ii) increases in the price of the output. (iii) accumulations of specific training from workers. (iv) technological advances which encourage automation. (

    		•
  • Q : Define the going rate pricing briefly

    Define the going rate pricing briefly.

    		•
  • Q : Which progress illustration was Pilgrims

    Agricultural productivity within Massachusetts Bay Colony increased while Native Americans showed Pilgrims how crops grow faster and better when rotten fish are dropped in along with newly-planted seeds. This new knowledge for the Pilgrims was an illustration of: (1)

    		•
  • Q : Illustrates the internal economies of

    Illustrates the internal economies of scale?

    		•
  • Q : Illustrates the term long run

    Illustrates the term long run production function?

    		•
  • Q : Diminishing Returns in Marginal Revenue

    When a firm is experiencing diminishing returns as: (w) the marginal product of labor rises as more labor is hired. (x) the marginal revenue product of labor falls as more is hired. (y) the marginal resource cost of labor will be declining. (z) this w

    		•