Question

With a linear production function there is a: Select one: A. perfect substitutable relationship between all...

With a linear production function there is a:

Select one:

A. perfect substitutable relationship between all inputs.

B. perfect complementary relationship between all inputs.

C. fixed-proportion relationship between all inputs.

D. variable-proportion relationship between all inputs.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

With a linear production function there is a:

A) perfect sustitutable relationship between all inputs.Reason: A linear production function is represented by a straight-line isoquant. The inputs required for a linear production function are perfect substitutes of each other. For example, if a firm requires 4 labours for production of a product and these 4 labours produce 50 products in 8 hours of time, but they can be replaced by 2 machines as they produce the same amount of products in 4 hours. so now the producer can either employ 4 more labours or get 2 machines and terminate the labourers. Both the inputs, labour and machines are perfect substitutes of each other, thus, here, the producer faces linear production function.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If two inputs must be used in a fixed proportion, then: a) the inputs are perfect...
If two inputs must be used in a fixed proportion, then: a) the inputs are perfect substitutes. b) the inputs are imperfect substitutes. c) the inputs are complementary inputs. d) the isoquant is up-sloping and linear. e) the isoquant is down-sloping and linear.
When the inputs to production are imperfect substitutes but still somewhat substitutable, the firm will minimize...
When the inputs to production are imperfect substitutes but still somewhat substitutable, the firm will minimize the cost of producing a given level of output by: A. None of these answers is correct B. Equating the ratios of marginal products to input prices. C. Equating the marginal products across inputs D. Using the inputs in a fixed proportion E. Using only the cheapest input
1. Long run average costs rise as output (q) increases Select one: a. Economy of Scale...
1. Long run average costs rise as output (q) increases Select one: a. Economy of Scale b. Decreasing Returns to Scale c. Increasing Returns to Scale d. Constant Returns to Scale e. Diseconomy of Scale 2. A production function where the MRTS is constant at all points. Isoquants are straight lines. Select one: a. Production Function b. Isoquant c. Perfect Substitutes Production Function d. Isocost Line e. Technology Function f. Fixed-Proportions Production Function 3. A production function with L-shaped isoquants...
Operating leverage refers to: Select one: a. the relationship between product mix and costs b. the...
Operating leverage refers to: Select one: a. the relationship between product mix and costs b. the mix between sales and variable costs. c. the mix between fixed and variable costs. d. the mix between sales and fixed costs.
(Production) A production function shows the relationship between inputs and an output. Consider a production function...
(Production) A production function shows the relationship between inputs and an output. Consider a production function for your own academic success. What would you measure as the output? Describe at least four inputs that would affect your academic success and explain whether each input has a positive or negative effect on your academic success. Write at least two paragraphs.
When an LP objective function is to maximize profits: Select one: a. resource constraints must be...
When an LP objective function is to maximize profits: Select one: a. resource constraints must be of the £ variety. b. resource constraints must be of the ³ variety. c. all input costs must be variable. d. the total revenue function must not be linear. When some capacity constraints are binding, although others are nonbinding: Select one: a. the shadow price for new capacity is positive. b. the shadow price for output is positive. c. the marginal revenue product for...
In the case of a short-run production function: A) all of the inputs are variable. B)...
In the case of a short-run production function: A) all of the inputs are variable. B) the amount of labor employed is held constant. C) at least one of the inputs is fixed. D) all of the inputs are fixed. Answer: 2) X-inefficiency refers to the situation in which: A) highly competitive firms have less incentive to minimize their costs of production than other firms because the highly competitive firms have almost no chance to earn above-average profits. B) firms...
The slope coefficient (b) measures the ______________ of the linear relationship between the independent and dependent...
The slope coefficient (b) measures the ______________ of the linear relationship between the independent and dependent variable while the correlation coefficient indicates the _______________ of the relationship. a. strength; direction b. form; strength c. direction; form d. strength; form
Profit contribution equals total: Select one: a. revenue minus variable cost. b. revenue minus fixed cost....
Profit contribution equals total: Select one: a. revenue minus variable cost. b. revenue minus fixed cost. c. profit. d. revenue minus total cost. Slack variables: Select one: a. allow constraint equations to be expressed as inequalities. b. measure excess capacity. c. never equal zero. d. in some cases have negative values. The cost of capacity subject to constraints is: Select one: a. variable. b. sunk. c. semi-variable. d. nonzero. To determine the quantity to be produced by each production process...
Profit contribution equals total: Select one: a. revenue minus variable cost. b. revenue minus fixed cost....
Profit contribution equals total: Select one: a. revenue minus variable cost. b. revenue minus fixed cost. c. profit. d. revenue minus total cost. Slack variables: Select one: a. allow constraint equations to be expressed as inequalities. b. measure excess capacity. c. never equal zero. d. in some cases have negative values. The cost of capacity subject to constraints is: Select one: a. variable. b. sunk. c. semi-variable. d. nonzero. To determine the quantity to be produced by each production process...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT