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
ANSWER
B
Place an order in 3 easy steps. Takes less than 5 mins.