Asked by
Nuveh Fonua
on Oct 25, 2024
Verified
Joe owns a coffee house and produces coffee drinks under the production function q = 5KL where q is the number of cups generated per hour, K is the number of coffee machines (capital) , and L is the number of employees hired per hour (labor) . What is the marginal product of labor?
A) MP = 5
B) MP = 5K
C) MP = 5L
D) MP = 5K/L
Marginal Product
The rise in production resulting from the use of one more unit of input.
Coffee House
A place that primarily serves coffee and other beverages, and which often serves as a gathering place for community interaction or relaxation.
Coffee Machines
Devices designed for brewing coffee, which can range from simple stove-top percolators to sophisticated, programmable electric drip coffee makers.
- Learn about the relationship between marginal product and the components that improve productivity, such as labor and technology.
- Decode production functions and evaluate the marginal and average product of labor.
Verified Answer
CV
Learning Objectives
- Learn about the relationship between marginal product and the components that improve productivity, such as labor and technology.
- Decode production functions and evaluate the marginal and average product of labor.