Question

I run a customer service center and I can use either customer representative (L) or an automated system (K) to service complaints. A customer representative can service 8 customers in an hour satisfactorily, whereas the automated system can only service 4 customers in an hour. If Q represents the number of customers serviced in an hour, my production function is a perfect complement production function. True False

Answer 1

False

Step-by-step explanation:

A production function shows the level of output of a production process from a given number of inputs.

So it shows the number of output from a combination of inputs used. Usually capital and labour are used as the input variables.

In the given scenario if we consider the marginal products of L and K

MP of L = 8

MP of K = 4

Since marginal products are constant quantity produced will be a liners function in the form

Q = 8L + 4K

This form of production function where the inputs shows they are perfect substitutes.

They can be substituted for each other at a constant rate.

A complement will need fixed proportions of the inputs and that is not the case here.