Question

The all-American baseball is made using cork from Portugal, rubber from Malaysia, yam from Australia, and leather from France, and it is stitched by workers in Costa Rica. It takes four workers (L), two units of materials (M) and one unit of transportation (K) to supply a baseball to the market. Which of the following functions describes the production function? q=L/4+K+M/2 q=min[4L,K,2M] q=min[L/4, K,M/2] 1=4L+K+2M Following the previous question, let the cost of each unit of labor (L) be $1 in Costa Rica and $2 in Georgia, the cost of each unit of transportation (K) be $4 from Costa Rica and $2 from Georgia, and the cost of a unit of all other materials combined (M) be $3. Assume producing each unit of output requires fours unit of labor, one unit of transportation, and two units of all other materials combined. Which of the following function best describes the long-run cost function of producing all-American baseballs? c(q)=11q d(q)=13q ciq)=14a d(q)=16q

Answer 1

Answer: Scroll Down Below...Explanation - To decide the long-run cost function of bearing all-American baseballs, we need to believe the costs guide labor (L), conveyance (K), and different fabrics (M) established the likely facts.Given:- Cost of each part of labor (L): $1 in Costa Rica and $2 in Georgia.- Cost of each whole of conveyance (K): $4 from Costa Rica and $2 from Georgia.- Cost of a part of all added matters linked (M): $3.We are likewise likely that bearing each whole of gain demands 4 parts of labor, 1 part of conveyance, and 2 wholes of all different matters linked.To reckon the long-run cost function, we need to decide the costs guide the quantities of labor (L), conveyance (K), and matters (M) necessary to produce a likely portion of yield (q).The cost function (c(q)) maybe signified in this manner:c(q) = (cost of labor for one) * (parts of labor) + (cost of conveyance for one) * (parts of conveyance) + (cost of matters apiece) * (wholes of matters)Substituting the likely costs and quantities into the cost function, we take:c(q) = (1 * L/4 + 2 * K + 3 * M/2)Simplifying the verbalization, we have:c(q) = (L/4 + 2K + 3M/2)Therefore, the long-run cost function of bearing all-American baseballs is best detailed by:c(q) = (L/4 + 2K + 3M/2)Among the alternatives determined, the tightest likeness of the long-run cost function is:c(q) = (L/4 + 2K + 3M/2)