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What is a production​ function? How does a​ long-run production function differ from a​ short-run production​ function?A function showing the highest output that a firm can produce for every specified combination of inputs. In the​ short-run production​ function, all inputs are​ variable, whereas the​ long-run production function has at least one fixed input.B.A function showing the highest output that a firm can produce for every specified combination of inputs. In the​ long-run production​ function, all inputs are​ variable, whereas the​ short-run production function has at least one fixed input.C.A function showing the minimum output that a firm can produce for every specified combination of inputs. In the​ short-run production​ function, all inputs are​ variable, whereas the​ long-run production function has at least one fixed input..D.A function showing the minimum output that a firm can produce for every specified combination of inputs. In the​ long-run production​ function, all inputs are​ variable, whereas the​ short-run production function has at least one fixed input.

The marginal product of labor in the production of computer chips is 70 chips per hour. The marginal rate of technical substitution ​(MRTS​) of hours of labor for hours of machine capital is 0.50. What is the marginal product of​ capital?

A firm uses 80 hours of labor and 6 units of capital to produce​ 10,000 gadgets per day.​ Labor's marginal product is 4 gadgets per hour and the marginal product of capital is 20 gadgets per unit. Each unit of labor costs​ $8 per hour and each unit of capital costs​ $50 per unit. If the firm wants to continue producing​ 10,000 gadgets per day at the lowest possible​ cost, it shouldA.continue using 80 hours of labor and 6 units of capital.B.use more capital and less labor.C.use more labor and less capital.D.use less of both inputs.

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