Asked by Alier Alfonso-Ramos on Jun 09, 2024
Verified
The UJava espresso stand needs two inputs, labor and coffee beans, to produce its only output, espresso.Producing an espresso always requires the same amount of coffee beans and the same amount of time.Which of the following production functions would appropriately describe the production process at UJava, where B represents ounces of coffee beans, and L represents hours of labor?
A) Q min(2B, 60L) .
B) Q B0.40L0.60.
C) Q B/2 L/30.
D) Q 0.5B 0.5L0.5.
E) None of the above.
Production Function
A mathematical representation that describes how inputs like labor and capital are turned into outputs, such as goods or services.
Inputs
The resources used in the production process to produce goods or services, including labor, materials, and capital.
Output
The amount of goods or services produced by a person, machine, factory, or entire economy in a certain period.
- Understand the relevance of specific types of production functions (e.g., Cobb-Douglas, Leontief) in real-world production processes.
Verified Answer
SP
Sidoney Pratt IG: ImperfectlySidJun 10, 2024
Final Answer :
A
Explanation :
The correct production function is A) Q=min(2B,60L)Q = \min(2B, 60L)Q=min(2B,60L) because it reflects a process where the output is determined by the lesser of two inputs, scaled appropriately for their units (ounces of coffee beans and hours of labor), which is consistent with the description of the espresso production process at UJava.
Learning Objectives
- Understand the relevance of specific types of production functions (e.g., Cobb-Douglas, Leontief) in real-world production processes.