Suppose the Production Function for a Bakery Is

question 100

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 and the rental rate of capital is $10 per hour. The firm's expansion path is ____.

• A) K = 0.5L
• B) K = L
• C) K = 2L
• D) K = L²

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Definitions:

Retroactive Amnesia

A type of amnesia where an individual loses memories for events that occurred before a certain event, often a traumatic one, making it difficult to remember past information.

Retrograde Amnesia

A loss of memory-access to events that occurred, or information that was learned, before an injury or the onset of a disease.

Prefrontal Lobe

A part of the frontal lobes of the brain involved in decision making, social behavior, and personality expression.

Hippocampus

A major component of the brains of humans and other vertebrates, involved in the consolidation of information from short-term memory to long-term memory and spatial navigation.