The UJava Espresso Stand Needs Two Inputs, Labor and Coffee

question 22

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 = min(2B, 60L).
• B)Q =B^0.40L^0.60.
• C)Q = B/2 + L/30.
• D)Q = 0.5B + 0.5L^0.5.
• E)None of the above.

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Definitions:

Services Rendered

The provision of services to a customer or client, which can be invoiced once the service has been completed.

Subsidiary Ledger

A detailed ledger that contains all the transaction details of a specific account, which rolls up into the general ledger.

Controlling Account

A controlling account is a summary account in the general ledger that consolidates and reflects the total balance of all subsidiary accounts related to it.

General Ledger

The primary accounting record used to track all of a company's financial transactions, summarized from subsidiary ledgers.