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 = B^0.60L^0.40. B) Q =+. C) Q = min(2B, 60L). D) Q = 0.5B + 0.5L^0.5. E) None of the above.

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Quizplus · Accepted Answer

The production function that best describes the production process at UJava is the one that uses only the inputs of labor and coffee beans to produce espresso. Option C is the only function that uses only these two inputs and produces a realistic output - the function takes the minimum of either 2B or 60L, indicating that the production of espresso is limited either by the amount of coffee beans or by the available labor. Option A is a complicated function and uses additional variables that are not relevant for the production process of UJava. Option B is not even a function and lacks any mathematical relationship between inputs and outputs. Option D uses a non-standard way of incorporating the variable S1, and the coefficient 0.5 is not supported by any realistic assumptions about the production process. Therefore, option C is the best choice for this production process.

The UJava Espresso Stand Needs Two Inputs, Labor and Coffee