A call center employs workers and automatic answering machines. Each worker is able to answer a maximum of 5 calls per hour (6 hours a day; a total of 30 calls per day); each automatic answering machine is able to answer a maximum of 10 calls per hour (24 hours a day; a total of 240 calls a day). Denote the number of workers employed by the company by L and the number of automatic answering machines employed by the company by K. The firm’s daily production function is?
a. f(L,K) = max {30L, 240K}
b. f(L,K) = 240K
c. f(L,K) = min {30L, 240K}
d. f(L,K) = 30L + 240K
e. f(L,K) = 30L

The call center's daily production function is determined by the maximum amount of calls human employees can answer + the total amount of calls an automatic machine can answer.

f(L,K) = 30L + 240K

the function is: 30 calls per human labor + 240 calls per number of automatic answering machines

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pedrocarratore pedrocarratore · Answer 2 · 2019-10-29T20:04:04+01:00

Answer:

d. f(L,K) = 30L + 240K

Explanation:

Assuming that the company employs both workers and automatic answering machines, its total production is the sum of calls answered by all workers and machines. The total calls answered by workers equal the number of workers (L) multiplied by each worker's call capacity per day (30). The total calls answered by machines follows the same logic, it is equal to the number of machines (K) multiplied by each machine's call capacity per day (240).

Therefore, the firm's daily production function is:

f(L,K) = 30L + 240K