--%>

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 : What did professor Marshall illustrates

    What did professor Marshall illustrates about Law of Demand? Answer: According to Marshall “the amount demanded raises along with reduces in price and diminish

  • Q : Income effect of a wage increasing When

    When the income effect of a wage increase is more powerful in that case the substitution effect, the: (1) labor supply curve will be “backward bending.” (2) unemployment rate will rise since more people will be available for work. (3) valu

  • Q : Determine market supply of labor The

    The market supply of labor is the sum of the: (1) quantities of labor supplied by households at each wage. (2) wages paid to households for each quantity supplied. (3) quantities demanded by firms at each wage. (4) marginal products of labor at each l

  • Q : Boom - Phases of business cycle Explain

    Explain about the term Boom in phases of business cycle.

  • Q : Illustrations of investments in human

    Illustrations of investments in human capital would comprise: (1) freeing slaves at the conclusion of the Civil War. (2) betting on the outcome of a professional wrestling match. (3) need people to pass a test on the U.S. Constitution before permittin

  • Q : Environmental or external issues of

    What are the Environmental or external issues of managerial economics?

  • Q : Wage Flexibility An assumption

    An assumption regarding purely competitive labor markets to make sure market clearing is which: (w) firms maximize profit. (x) individuals and households maximize utility. (y) wages and prices are flexible. (z) trade unions engage in collective bargai

  • Q : What are the various fields of Economics

    What are the various fields of Economics? Explain.

  • Q : Illustrates the term shot run

    Illustrates the term shot run production function?

  • 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