Describe gretas short-run production function

Reference no: EM13223333

Greta starts an internet-based grocery delivery service. His employees must perform one of three activities:

Administrative work: Exactly 2 workers are necessary to perform the administrative work for the business to operate. The administrative workers do not generate revenue.

Delivery: Each employee working as a driver can deliver up to 20 orders daily.

Assembling orders: Each employee can prepare and pack up to 100 orders daily.

Suppose that each worker can work in exactly one capacity (so she cannot split her time between delivery or packing).

Greta's short-run production function says how many orders can be completed by L employees. Describe Greta's short-run production function. (Hint: how many orders can she complete when she has 3 employees? How many orders can she complete when she has 10 employees?) What are her returns to scale when she changes employment from 5 to 10 workers?

Reference no: EM13223333

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