Which of the following is the most reasonable production function for bicycles (b)made of frames (f), handlebars (h), seats (s), and wheels (w)? (Note: frames include pedals, gears, and other parts.)
A)b = min(f,h,s,w/2)
B)b = fhsw/2
C)b = min(f,h,s,2w)
D)b = max(f,h,s,w/2)

Question

Quizplus · Accepted Answer

Option A is not reasonable as it assumes that the number of wheels will limit the number of bicycles produced. Option B is also not reasonable as it assumes that every bicycle produced will have the same combination of frames, handlebars, seats, and wheels which is not practical. Option D is also not reasonable as it does not take into account the fact that a bicycle needs all four components to be functional. Option C is the most reasonable as it assumes that the minimum quantity of each component required to produce a bicycle is frames, handlebars, seats, and 2 wheels.

Which of the Following Is the Most Reasonable Production Function