A political campaign manager must decide whether to emphasize television advertisements or letters to potential voters in a reelection campaign. Describe the production function for campaign votes.
A. Campaign managers produce campaign votes.
B. Reelection campaigns produce campaign votes.
C. Television advertisements and campaign votes produce letters to potential voters.
D. Television advertisements and letters to potential voters produce reelection campaigns.
E. Television advertisements and letters to potential voters produce campaign votes.
How might information about this function (such as the shape of the isoquants) help the campaign manager plan strategy?
A. If the marginal rate of technical substitution of television advertisements for letters to potential voters is constant, then the campaign manager should use a combination of the two inputs.
B. If television advertisements and letters to potential voters are perfect complements, then the campaign manager should use them in fixed proportions.
C. If television advertisements and letters to potential voters are perfect substitutes, then the campaign manager should use them in fixed proportions.
D. If the isoquant curves for television advertisements and letters to potential voters are convex, then the campaign manager should use only the cheaper input per vote.
E. If the isocost lines for television advertisements and letters to potential voters are convex, then the campaign manager should use a combination of the two inputs.

Answer:

First answer - (E)

Second answer - (B)

Explanation:

The trade-off here is between TV ADVERTISEMENTS and LETTERS TO POTENTIAL VOTERS. The campaign manager for the candidate who is running for reelection, is trying to decide which of the two factors he should use more of or emphasize. The production function for campaign votes can be simplified as

TVAD + LTPV = CV

This is the production function for campaign votes.

PART A

Describe the production function for campaign votes (in words).

ANSWER: (E)

Television advertisements and (or 'plus') letters to potential voters, produce (or 'equal') campaign votes.

PART B

How might information about this function (such as the shape of the isoquants) help the campaign manager plan strategy?

ANSWER: (B)

If television advertisements and letters to potential voters are perfect complements (complements are goods or actions that 'must' go together or be used together) then the campaign manager should use them in fixed proportions (e.g. in a ratio of 50:50).

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