Suppose That a Hot Dog Vendor Uses a Cart (K)

question 24

Essay

Suppose that a hot dog vendor uses a cart (K) and his time (L) to make and sell hot dogs. The vendor's production function is , where Q is the number of hot dogs per day. Suppose that the rental on hot dog carts is $50 per day and that the vendor wants to produce 500 hot dogs per day.
a. Use calculus to derive the demand for labor.
b. Use calculus to show that the demand for labor satisfies the law of demand.

---

Definitions:

Oil Reserves

Quantities of crude oil held underground that have been discovered and are considered recoverable under current economic and operational conditions.

Competitive Equilibrium

A state in a market where the supply of goods matches demand, with no incentive for price change, resulting from the competition among many buyers and sellers.

Factors Of Production

Inputs into the production process (e.g., labor, capital, and materials).

Profit

The financial gain made in a transaction or operation, calculated as the difference between the revenue earned and the costs incurred.