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olchik [2.2K]
3 years ago
13

The UJava espresso stand needs two inputs, labor and coffee beans, to produce its only output, espresso. Producing an espresso a

lways requires the same amount of coffee beans and the same amount of time. What type of production function will appropriately describe the production process at UJava, where B represents ounces of coffee beans, and L represents hours of labor? Write down the functional form of the production function.
Business
1 answer:
bezimeni [28]3 years ago
8 0

Answer:

Q = min[3B; 40L]

Explanation:

This is an example of Leontief production function in which factors of production, in this case B and L, are used in fixed proportion that is determined by the production technology which makes  substitutability between factors impossible.

If we assume that 3 ounces of B and 40 minutes of L are always required to produce one unit of espresso represented by Q, the functional form of the production function can be written as follows:

Q = min[3B; 40L].

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