In: Economics
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.