--%>

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 : Categorized the Positive income

    Categorized the Positive income Elasticity?

  • Q : Part of the payment in economic rent

    Economic rent shows part of the payment for the utilization of: (w) landowners’ labor and capital to keep their land. (x) landowners’ buildings and equipment. (y) resources for that supplies are less than perfectly elastic. (z) any piece o

  • Q : Moral Hazard and Efficiency Wages

    Firing a worker who regularly goods off and calls in sick may not resolve the moral hazard problem of shirking when: (w) there is a high probability which the worker will sue the firm. (x) the local unemployment rate is high. (y) average worker productivity is low. (z

  • Q : Human Capital and Wage Differentials in

    If compared along with average high school graduates, in that case average Americans along with college degrees: (1) uniformly earn more at every point over their whole lives. (2) earn more primarily early throughout their careers. (3) earn more, but only later during

  • Q : Model of purely competitive resource

    The model of purely competitive resource markets describes how: (1) U.S. income distribution patterns are determined. (2) wages are determined in the United States. (3) resource prices would be determined in efficient markets. (4) competition leads to

  • Q : Illustrates the Forward Planning in

    Does managerial economic as a tool for Forward Planning? Explain this term briefly.

  • Q : Income effect by personal supply of

    A personal supply of labor is exemplified by an income effect which dominates the substitution effect if: (w) Trina retires to a beach condo after working for the city for 42 years. (x) members of a rock band give up touring for a yea

  • Q : Explain Simultaneous equation method of

    Explain the Simultaneous equation method of Demand Forecasting.

  • Q : What are the features of phases of

    What are the features of phases of business cycle?

  • Q : Illustrates the pricing policies briefly

    Illustrates the pricing policies briefly?