Asked by Kevin Nguyen on May 21, 2024
Verified
Joe owns a coffee house and produces coffee drinks under the production function q = 5KL where q is the number of cups generated per hour, K is the number of coffee machines (capital) , and L is the number of employees hired per hour (labor) . What is the average product of labor?
A) AP = 5
B) AP = 5K
C) AP = 5L
D) AP = 5K/L
Average Product
The output per unit of input, calculated by dividing total product (output) by the number of units of the input.
Coffee House
A venue or establishment that primarily serves coffee and related beverages, often functioning as a social hub.
Coffee Machines
Appliances designed to brew coffee, varying widely in terms of functionality, design, and brewing techniques.
- Acquire knowledge of how marginal product is related to productivity-enhancing factors like labor force and technology.
- Comprehend the mechanisms of production functions and determine the marginal and average labor productivity.
Verified Answer
PB
PHUONG BUI THUMay 21, 2024
Final Answer :
B
Explanation :
The average product of labor (APL) is calculated as the total output (q) divided by the number of units of labor (L). Given the production function q = 5KL, the total output per unit of labor is q/L = 5KL/L = 5K, making the average product of labor 5K.
Learning Objectives
- Acquire knowledge of how marginal product is related to productivity-enhancing factors like labor force and technology.
- Comprehend the mechanisms of production functions and determine the marginal and average labor productivity.