Asked by
Lokesh Choudhary
on Oct 25, 2024
Verified
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
Production Function
A mathematical relationship expressing the output generated by a firm from different quantities of inputs.
Capital
Economic resources that are used to produce goods and services, including buildings, machinery, tools, and equipment.
Labor
The human effort, including both physical and mental, used in the production of goods and services.
- Analyze the implications of fixed and variable inputs on production functions.
Verified Answer
MA
Learning Objectives
- Analyze the implications of fixed and variable inputs on production functions.