Figure 6.2.2
-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 marginal product of labor?

Question

Quizplus · Accepted Answer

The marginal product of labor (MP_L) is found by taking the partial derivative of the production function with respect to labor (L), which in this case is 5K. This represents the additional output produced by hiring one more employee, holding the number of coffee machines constant.

Figure 6.2.2 -Joe Owns a Coffee House and Produces Coffee Drinks Under