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 average product of labor? A) AP = 5
B) AP = 5K
C) AP = 5L
D) AP = 5K/L
B
You might also like to view...
Even though a high portion of the public debt is held by older and wealthy individuals or institutions, the debt is paid for by increased taxes on
A) only those holding the actual debt. B) purchasers of gasoline and luxury items. C) all taxpayers. D) those who invest in the stock market.
The statement "Unemployment should be below 6 percent" is
A) a positive statement. B) a normative statement. C) a prediction. D) an assumption.
The longer the time frame involved, the more likely it is that the demand will be relatively
A) elastic. B) inelastic. C) steep. D) flat.
In the circular flow model, resources flow from the households to the firms
Indicate whether the statement is true or false