Joe owns a small coffee shop, and his production function is q = 3KL where q is total output in cups per hour, K is the number of coffee machines (capital), and L is the number of employees hired per hour (labor). If Joe's capital is currently fixed at K=3 machines, what is his short-run production function? A) q = 3L B) q = 3L² C) q = 9L D) q = 3K²

Question

Quizplus · Accepted Answer

In the short run, capital (K) is fixed. Given K=3, substituting into the production function q = 3KL gives q = 3*3*L = 9L, making option C the correct short-run production function.

Joe Owns a Small Coffee Shop, and His Production Function