The Nespresso stand needs two inputs, (hours of) labor and coffee beans, to produce its only output, cup of 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 Nespresso, where B represents ounces of coffee beans, and L represents hours of labor? Select one: a. Q=B^0.6 L^0.6 b. Q=min{2B,40L} c. Q=B/2+L/2 d. Q=B^0.6 L^0.4

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
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Chapter9: Production Functions
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The Nespresso stand needs two inputs, (hours of) labor and coffee beans, to produce its only output, cup of 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 Nespresso, where B represents ounces of coffee beans, and L represents hours of labor?

Select one:

a.

Q=B^0.6 L^0.6

b.

Q=min{2B,40L}

c.

Q=B/2+L/2

d.

Q=B^0.6 L^0.4 

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