The Production Function of a Restaurant Includes Items Such as Labor

question 160

Multiple Choice

The production function of a restaurant includes items such as labor (i.e. ,cooks,waiters,and a manager) ,capital (i.e. ,ovens,counters,tables,chairs,and a building) ,and land.In the short run,the owner of the restaurant will optimize production by employing a variable amount of ________ given a fixed amount of ________.

• A) capital; labor and land
• B) land; capital and labor
• C) labor; capital and land
• D) labor; capital and raw materials
• E) land; labor and raw materials

---

Definitions:

Currency

The system of money in general use in a particular country, used for buying and selling goods and services.

Foreign Countries

Nations other than one's own, especially when considered as the context for international trade, diplomacy, or cultural exchange.

Purchasing-power Parity

A theory that states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

Nominal Exchange Rate

The rate at which one country's currency can be exchanged for another country's currency without adjusting for inflation rates.