Suppose the Production Function for a Bakery Is

question 77

Multiple Choice

Suppose the production function for a bakery is:
Q = 4K^0.4L^0.6
Where Q is the number of loaves of bread produced per day, K is the number of ovens, and L is the number of workers employed. Suppose that the wage rate is $5 per hour, the rental rate of capital is $10 per hour, and the baker wants to produce 4,000 loaves of bread. The firm's demand for labor is ____.

• A) L = 2.95W^-0.4
• B) L = 2.95W^-0.6
• C) W = 2.95L^-0.4
• D) L = 2.95W

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Definitions:

Bird

Endothermic reptile that has feathers and wings, is often adapted for flight, and lays hard-shelled eggs.

Homeostasis

The ability of an organism to maintain stable internal conditions despite changes in external environments.

Overheated

A state or condition where an object, device, or system exceeds its optimal temperature, potentially causing damage or failure.

Perspire

The process by which sweat glands in the skin produce sweat, allowing the body to regulate its temperature.