The UJava Espresso Stand Needs Two Inputs, Labor and Coffee

question 42

Multiple Choice

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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Definitions:

Production Volume

The quantity of goods that a company produces within a specific period of time.

Utility Costs

Expenses incurred for basic services such as electricity, water, gas, and sewage, vital for running a business or household.

Cost Object

Anything for which a separate measurement of costs is desired, including products, services, projects, activities, or customers.

Management Interest

The concern or focus areas of organizational managers, particularly regarding strategy, operations, and achieving objectives.