Suppose the production function for a bakery is:
Q = 4K0.4L0.6
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
Correct Answer:
Verified
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