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 = B/2 + L/2. 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 process at UJava requires a fixed amount of coffee beans and time to produce an espresso. In option A, there are multiple variables being used to describe the production function, which is not appropriate for the given scenario. Option B assigns a linear relationship between the amount of coffee beans and labor, which does not accurately describe the production process. Option D assigns a different weight to the inputs of labor and coffee beans, which is not appropriate for the given scenario. Option C is the best choice as it accurately describes the fixed relationship between coffee beans and labor required to produce an espresso.

The UJava Espresso Stand Needs Two Inputs, Labor and Coffee