The$$ all$-$American baseball is made using cork from$$ Portugal, rubber from$$ Malaysia, yarn from$$ Australia, and leather from$$ France, and it is stitched$(108$ stitches$$ exactly$)$ by workers in Costa Rica.$$To assemble a baseball takes one unit of each of these

inputs.

$$ Ultimately, the finished product must be shipped to its final destination. The materials used cost the same anywhere. Labor costs are lower in Costa Rica than in a possible alternative manufacturing site in$$ Georgia, but shipping costs from Costa Rica are higher.

Part $2$

Let the cost of each unit of labor$($L$)$ be

w Subscript crwcr

in Costa Rica and

w Subscript gwg

in$$ Georgia, the cost of each unit of transportation$($K$)$ be

r Subscript crrcr

from Costa Rica and

r Subscript grg

from$$ Georgia, and the cost of a unit of all other materials combined$($M$)$ be p$.$ Assume producing each unit of output requires one unit of$$ labor, one unit of$$ transportation, and one unit of all other materials combined.

Part $3$

What production function is$$ used?$$

Part $4$

The production function is

$($q

$=$ quantity

produced$)$

Part $5$

A$.$

qequals$=$Ltimes$$Ktimes$$M$.$

B$.$

qequals$=$min$($L$,$K$,$M$).$

C$.$

qequals$=$max$($L$,$K$,$M$).$

D$.$

qequals$=$Lplus$+$K$.$

E$.$

qequals$=$Lplus$+$Kplus$+$M$.$