digital kitchen location with a production function of q= (L^0.3 )(K^0.5), where q is the number of chicken meals it sells, L is employee hours, and K is robot hours. Chicken sells for a price p. Employees and robots are paid w and r per hour, respectively. In the short run, Los Pollos Hermanos uses 25 robots. (a) define diminishing marginal returns to labor. (b) Does Los Pollos Hermanos experience diminishing marginal returns to labor? If so, at what number of employee hours does it occur? (c) Calculate Los Pollos Hermanos's short-run demand for labor (i.e., its short-run unconditional demand function for labor).

digital kitchen location with a production function of q= (L^0.3 )(K^0.5), where q is the number of chicken meals it sells, L is employee hours, and K is robot hours. Chicken sells for a price p. Employees and robots are paid w and r per hour, respectively. In the short run, Los Pollos Hermanos uses 25 robots. (a) define diminishing marginal returns to labor. (b) Does Los Pollos Hermanos experience diminishing marginal returns to labor? If so, at what number of employee hours does it occur? (c) Calculate Los Pollos Hermanos's short-run demand for labor (i.e., its short-run unconditional demand function for labor).

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section: Chapter Questions

Problem 4QP

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