Multiple Choice
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 and the rental rate of capital is $10 per hour. The firm's expansion path is ____.
A) K = 0.5L
B) K = L
C) K = 2L
D) K = L2
Correct Answer:
Verified
Correct Answer:
Verified
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