6. Suppose that an owner of a taco food truck uses a truck (K) and her...

6. Suppose that an owner of a taco food truck uses a truck (K) and her time (L) to make and sell tacos. Her production function is Q= K^.3 * L^.7, where Q is the number of tacos produced per day. Suppose that the rent on the taco food truck is $50 per day and that she wants to produce 500 tacos per day. Use calculus to:
a. derive the demand for labor.
b. show that the demand for labor satisfies the law of demand.

Expert Solution

Rahul Sunny answered 7 months ago

High Sierra Tacos acquired a taco truck from Taco Wholesalers on 6/30/15 and gave a noninterest-bearing...

High Sierra Tacos acquired a taco truck from Taco Wholesalers on 6/30/15 and gave a noninterest-bearing note in exchange. High Sierra Tacos is obligated to pay $650,000 on 6/30/17 to satisfy the obligation in full. If High Sierra Tacos accrued interest of $50,000 on the note in its 2015 year-end financial statements, at what amount would it record the equipment on its 6/30/15 balance sheet? A. $450,000 B. $700,000 C. $600,000 D. $650,000 E. $850,000 Tragic Taco lost its taco...

Hi I am working in an accouting project for a taco food truck. Can someone please...

Hi I am working in an accouting project for a taco food truck. Can someone please help me find the variable and fixed costs or such ? i can provide more info if needed. please assists. I have the costs of opening a start up food truck but that is it . thanks. what info do you need from me if any

You are the owner of a food truck selling paninis and other lunch items. You have...

You are the owner of a food truck selling paninis and other lunch items. You have been in business for 3 years and your sales are growing at a rate of 20% a year. You still owe $10,000 on your existing truck but based off your research you have determined that you can expand your operations in other areas of the city and make a profit. You have decided to add 2 new food trucks. Here are the financing facts...

Problem: Taco Fast Food Chain’s Case Martin Oritz, a purchasing manager of the True Taco fast...

Problem: Taco Fast Food Chain’s Case Martin Oritz, a purchasing manager of the True Taco fast food chain, was contacted by a salesperson of a food service company. The salesperson pointed out that the higher breakage rate was common in the shipment of most taco shells. Martin was aware of this fact, and noted that the chain usually experienced a 10% to 15% breakage rate. The salesperson then explained that his company recently had designed a new shipping container that...

In a perfectly competitive market, the price of a taco is $3.00 each. For Juan’s food...

In a perfectly competitive market, the price of a taco is $3.00 each. For Juan’s food truck, when it produces 100 tacos, the average variable cost of one cupcake is $2.7; the average fixed cost of one taco is $0.5. Juan should: Group of answer choices raise his prices above the perfectly competitive level. only produces in the short run. shut down immediately. only produces in the long run continue producing in the short and long run.

A bicyclist filed suit against a truck driver, the trucking company, and the truck owner after...

A bicyclist filed suit against a truck driver, the trucking company, and the truck owner after being struck while riding with a group of bicyclists along the shoulder of a highway. The driver who struck the bicyclist on the highway admits he “took his eyes off the road for a very short period of time,” but he denies driving in a careless or negligent manner that breached a duty of care. The driver says the bicyclist was also negligent and...

Nathan and Cody notice there is stiff competition in the food cart and food truck industries...

Nathan and Cody notice there is stiff competition in the food cart and food truck industries and therefore are considering opening a traditional restaurant. Opening a restaurant would have many advantages and disadvantages, the company can expect fixed costs to increase by $140,000 a year to cover rent, equipment, furniture, salaries and other costs. This alternative is exclusive of alternative 1 -so use the original financial information from page 1 (also shown below) to calculate the effects of opening a...

Laura wants to buy a delivery truck. The truck costs $114,000 , and will allow her...

Laura wants to buy a delivery truck. The truck costs $114,000 , and will allow her to increase her after tax profits by $17,000 per year for the next 10 years. She will borrow 99% of the cost of the truck for 10 years, at an interest rate of 6%. Laura’s unlevered cost of capital is 15% and her tax rate is 22%. The loan includes a $2,000 application fee. What is the NPV of buying the truck on these...

Laura wants to buy a delivery truck. The truck costs $132,000 , and will allow her...

Laura wants to buy a delivery truck. The truck costs $132,000 , and will allow her to increase her after tax profits by $24,000 per year for the next 10 years. She will borrow 80% of the cost of the truck for 10 years, at an interest rate of 6%. Laura’s unlevered cost of capital is 17% and her tax rate is 34%. The loan includes a $1,000 application fee. What is the NPV of buying the truck on these...

Taco Bell, one of the leading fast food chains in USA, plans to start operations in...

Taco Bell, one of the leading fast food chains in USA, plans to start operations in Pakistan (Karachi). Taco Bell, in its country of origin, is known for spicy Mexican food and affordable prices. In Pakistan, however, it is an almost unheard of entity. A large Pakistani group has taken the franchise and wishes to conduct a pre-launch survey to gauge the likely consumer response based on consumer’s preferences in terms of taste, price, ambience etc. Requirements: Assume that you...

Question