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.
a. Suppose that the wage rate is $5 per hour and the rental rate of capital is $10 per hour. If the bakery wants to produce 4,000 loaves of bread, what is the cost-minimizing bundle of capital and labor?
b. Derive the firm's expansion path.

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The Answer of 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. a. Suppose that the wage rate is $5 per hour and the rental rate of capital is $10 per hour. If the bakery wants to produce 4,000 loaves of bread, what is the cost-minimizing bundle of capital and labor? b. Derive the firm's expansion path.

Suppose the Production Function for a Bakery Is