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:

Periodic Interest Rate

The interest rate charged or paid over a specific period of time, often less than one year, such as a month or quarter.

Annuity

A monetary scheme providing regular payment intervals to a person, often employed as a retirement income solution.

Payment Interval

The regular time period between payments on a loan or investment, such as monthly or annually.

Periodic Interest Rate

The interest rate charged or paid over a specific period of time, shorter than a year, such as monthly or quarterly.