Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 8P
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Question
![5. 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
Q = K0.3 10.7
produce 500 hot dogs per day. Use calculus to:
a. derive the demand for labor.
b. show that the demand for labor satisfies the law of demand.
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3f1eaed-a98f-4503-b42a-126d8424ff90%2F432c64f1-bf36-4f1e-a6f9-9ff7232cfe09%2F7vdi9lp_processed.png&w=3840&q=75)
Transcribed Image Text:5. 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
Q = K0.3 10.7
produce 500 hot dogs per day. Use calculus to:
a. derive the demand for labor.
b. show that the demand for labor satisfies the law of demand.
2
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