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.

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Expert Solution

Rahul Sunny answered 1 week ago

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